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Unity magnification red-dot sights are easier to use when on the move than other optic types. Shown here is an Aimpoint M2.
Type I sights are non-magnified red-dot optics. They are optimized for zero to 100 yards, and are most effective within the cartridge's point-blank distance, which is about 275 yards for 5.56. On large targets such as full silhouettes, they can make hits out to about 350 yards, but from 400 yards and further, compensating for over three feet of bullet drop is problematic. Type I optics are typically reduced-parallax or parallax-free red-dot sights with no magnification. The most common Type I optics are the Aimpoint M2, M3, or M4, and the EOTech.

The Aimpoint M2 (bottom), M3 (top), and M4 models provide battery life of 10,000, 50,000, and 80,000 hours respectively, and can truly be left on "all the time," ready for immediate use.
Unity magnification allows the fastest sight-picture acquisition and the shooter can maintain true binocular vision while shooting. At extended distances, the lack of magnification is a liability in target location, identification, and sight picture. Type I optics are appropriate for virtually all defensive rifle uses, and are the right choice for fighting with 100 yards. They excel at shooting while moving and shooting from awkward positions like rollover prone, supine, and the weak-side shoulder. Iron sights still have a place due to their dumb-as-rocks mechanical simplicity, and fit in as a Type I sighting system, although they do not enjoy many advantages of the Type I optics.

Without any magnification, the Aimpoint's maximum realistic range for making hits on silhouette-size targets is about 425 yards, using Kentucky hold-over.
I'll go out on a limb and call the Aimpoint M3 and M4 the best choices for a fighting Type I optic. The EOTech has followers and is used in harm's way, however, the Aimpoint line trumps the EOTech in several important respects: the Aimpoint's battery lasts much, much longer than the EOTech and the Aimpoint can be turned on and off using only tactile feedback. The shooter needs to be looking at the EOTech to determine if it's on. Market price for an EOTech or Aimpoint including quick-release mount ranges from about $500 up to $700.

Aimpoint offers a 3x magnifier which can be mounted behind the optic to provide some of the capabilities of the Type II sighting systems, yet can be quickly flipped away when it is not needed. Compared to natively-magnified optics, this combination-magnifier has much less field of view.

Type II sights are low-power magnified optics with reticle features providing aiming points for distant targets. The Type II optic should not have external knobs to prevent loss of zero due to the knobs being bumped. They are optimized for 75 to about 400 yards. Type II optics are generally either fixed magnification in the three to four power range, or are variable power in the one to four range. The most common Type II optic is the Trijicon ACOG, in either the 4x versions (TA31, TA01) or the 3.5x version (TA11). The US Military realizes these capabilities in the Designated Marksman Rifle (DMR) and Squad Designated Marksman Rifle (SDM-R).