Without knowing how many GCP's you used, how they're distributed and very importantly with what accuracy they were measured we can't answer any of your questions really..
In the best case it can't be better than 25 cm.What's the GSD (resolution) of the project? The GCP distribution seems good.How update is the reference photo? 25 cm pixel is Google Earth material. Maybe it's outdated from reality?
Hmmr I'd put the marker accuracy at 0.001 m then and optimize it on that. If the accuracy of the gcps is 25cm you can expect your output to have an accuracy 1-2 times this number for X and Y and 2-3 times for the height.
Are all the images acquired at nadir or near nadir? With such a flat region, I would expect significant tradeoff between the radial distortion and focal length (http://doi.wiley.com/10.1002/esp.3609). Adding some significantly oblique images could help to resolve this. The "optimize" approach is a good after the fact solution, but I suspect that tough projects will break it.