You set the bar pretty high, huh?
I'm pretty sure he was thinking "hunting means rifle", at least subconsciously. I've seen people who do meet that standard with a handgun but not many.
As far as competence, my own standard has three parts:
1) Administrative competence, in other words can you handle a loaded gun safely, load and unload it, and in general possess a firearm without endangering bystanders. Main skills are putting a gun in a holster and leaving it there, but also muzzle awareness, finger discipline, etc..
2) Marksmanship, or hitting what you are aiming at. At short ranges the standard is at least putting holes in paper without putting holes where they don't belong, but I could argue that a decent "absolute minimum" test is that you should be able to block your view of all of the holes you make with one hand at arm's length. At short distances that means 5" or so, but as the range extends the blocked area grows so at 100 yards you can block a whole tree with one hand. A skilled marksman should be able to block all of their holes from view with one thumb, and an expert should be hitting within the width of their front sight post, assuming an accurate gun and unlimited time.
3) Sangfroid. This to me is the true measure of competence. A person who is normally very conscientious about muzzle direction and can hit a quarter at 100 paces but starts shaking and peering down the barrel when someone yells at them or they see a deer isn't competent no matter how accurate and safe they seem at the range.