Jim,
It makes no difference what your chamber is, GG or a tighter PP chamber how a bore diameter patched in a tight or standard chamber for GG. The bullet will leave the muzzle looking like the first photo bullet does.
Yes the patched bullet to bore diameter in a loose chamber will expand fitting the chamber wall but it will get reduced back to bore and groove diameter and it will look like #1 again. That bullet was fired in a standard Shiloh chamber that will handle a GG if I chose to use one.
Deep seating an over sized projectile will shoot well but you loose the powder room in a say small case. I have projectile that will patch to bore or groove and both work just fine but the effect you might find using a oversized projectile when it gets swaged back down with a chamber to large in diameter where the inside of the case wall is wider than the grooves are deep you will develop finns at the base and it makes no difference with what sort of wads or alloy temper your using. If the bullet is too large for the bore/groove the lead will get pushed back down when it enters the lead and lands will swage the fin. It makes no difference using a PP or GG.
The only advantage I see using a bullet patched to groove diameter is when the chamber has a lot of freebore than the patched to groove will shine. I have and had rifles with excess freenbore and in those chambers I use a groove diameter bullet or one of Arnies DDEPP design and they smile in a long free bore chamber also in a regular chamber as long as it does not get patched wider than groove depth.
Jim and I spent time at matches and discussed bullet designs quite often and both of us had the agreement that the blunter nosed projectiles where more forgiving at extended ranges like the #1 in photo #2 and also it has held me high at the gong shoots and silhouette matches. They are more forgiving we found when the winds get up.
Alloy and wad stacks make a difference also how a bullet gets distorted from obturation. A bullet patched at bore diameter with a soft alloy will fair better than a hard when using felt or cork.
I have spent way too much time studding what happens to bullets settling my curiosity and founds a lot of head scratchers wondering why
those are 3# coffee cans full of curiosity bullets plus a 5 gallon bucket full that also melted back down into 10# ingots,
Best you hit the range and what works best for you. Yes you will end up with many moulds if your like most of us.
Kurt