I agree, if the drill was any bigger, we wouldn't know what the chip was to start with.

I guess it works if Mr. Magoo was a dealer and they wanted to make sure he could see the hole?

To answer the question, even though I have no first hand knowledge of the practice. To repair the chip, the "restoration" would mean finding on that was un-drilled, scan the inlay, print a new one, fill the hole with "chip stuff" and cover the repairs.

I really don't consider filling a hole, or replacing an inlay, to be an honest practice.