I've smashed powder-coated bullets into coins and the coating never flaked off. It's good stuff, better if applied via the embedment method (shaken violently for about 30-45 seconds with airsoft bbs in a sealed container) because the raw powder is very abrasive and actually makes the bullet surface appear sandblasted if you take one out and dust the powder off for a look-see. The PC really bites into that sort of surface. The coated bullets are smooth and the shaking oddly doesn't damage the delicate edges of the bullets if you find the correct ratio of bullets, powder, and bbs.
I also maintain that embedment makes a more even coating than is possible from ES spraying. Nothing beats the finish of sprayed bullets, but look good doesn't always mean shoot good if you can't precisely control the coating thickness and uniformity.
IF the coating method is perfected and loading techniques carefully optimized for the needs and advantages of the coating, I have every confidence that coated bullets would far surpass traditional lubed bullets for precision shooting. The main reason for that is the coating removes any and all inconsistencies associated with cast bullet lubricants, and as we all know most bullet lubes are NOT transparent when it comes to affecting the consistency of a shot string.
I read a long and most excellent thread a while back on the CBA about some 6mm plain based shooting with PC and HiTek. Lots of the "right kind" of truly scientific effort went into the testing. My only criticism of the tests was the PC coating itself needed a little help with the application technique, in fact I'm amazed they worked as well as they did for as splotchy and un-even as the coating appeared. Of course any 6mm bullet blown up to full screen size in a high-res pic is going to look terrible, but I've taken pictures of my .22s and they come out pretty good. Now, if I could only learn to load and shoot as well as that gentleman...