Pace only available in fractions of 0.05 instead of 0.01?

Current pace is not accurate enough to warrant going down to the :01s (and one could argue, it’s much less accurate than down to the :05s)

While I agree that GPS-based 1-sec current pace doesn't make any sense - Garmin did have it on older models (such as the FR405CX).

nope, my FR305 has 0,001 precision :) 

And probably realised that degree of numerical precision was meaningless. Just a pretty number that might not have been accurate.

Even if you could display it to that precision it would probably keep changing anyway. If you really want to see this then I installed the Foot Pod Pace CIQ data field to compare pace from Stryd with GPS. That displays to 0:01 but, even with a Stryd, it is in constant flux. I prefer the "smoothness" of the 0:05 and if you can tell the difference between say 8:00 or 8:01 pace then you are one up on me for sure.

they changed it (from the old Garmins) as did not make any sense :)

Try to install "exact pace" from IQ store. It's a good app. In my opinion, as expert and fast runner, the old models (like forerunner 910xt) that showed pace in fractions of 1 seconds were better. For an evolute runner the istant pace hasto be in fraction of 1 second.

better?? Consumer GPS is accurate only to 10m in best case - so you may appear to have a more precise umber, but its based on input data that cannot possibly be any more accurate.