The rules at all levels here basically say we have to use the block from the kit. At the NYC world championship event the rule stated, "Cars must have been built during the 2018 Pinewood Derby racing season (September 2018 through June 2019) using an Official BSA Pinewood Derby Kit or official BSA components purchased through an authorized BSA retailer such as a Scout Shop. Non-official BSA parts sold by an official BSA retailer are prohibited. Aftermarket car kits, non BSA precut kits, or cars purchased whole or in part from another racer, company, internet entity, or other are prohibited. Cars must be constructed by the racer and an adult, Scouts honor."
Pack rules are similar, no purchased blocks, use the kit provided.
I suspect it's nearly impossible for an inspector to really know if a block is purchased elsewhere or came from the kit once it's all painted over. But intent on going the honest route for now, I'm inclined to stick with a BSA kit block.
I've seen a $22 axle hole jig on Amazon, is that one any good? I'm fine with spending more if there's something better. My drill press isn't great, not sure I'd trust it to be able to dial in the angle accurately. So I'd prefer a hand-drill with jig option.