I never thought to tiller based upon areas with set I guess that makes sense though, is it because set develops in the places that have been stressed the most?
Yes, excess stress is the culprit. The trick is to be straining the limb evenly, and to have the set taken evenly.
Is 1in of set this early too much?
you would rather not have the bow take any set, but if it does happen, having it happen just as you arrive at your drawlength is preferable to happening earlier.
One consideration is that if an area near the handle takes set it will show as more deflex if you only look at how far the tips have set back.
One advantage to tracing the limb early and making comparisons as you go, is that you can see if set is happening evenly or locally.
The goal to strain the limb evenly is improved upon when the bowyer decides it is better to avoid set in the inner limbs and only push the outers to the point of taking set.
getting the tips moving a bit more if they are stiff and working the bend back into a stiff handle is a technique to having to remove too much wood in the major working portions of the limbs. At some point, if one has chosen too high of a weight goal. he may have to reduce his expectations or live with more set than desired.