To me it is drilling and the #deepholedrilling by themanufacturer would tend to support that.
Even if the process of drilling to that size is usually a bit boring, that tool would speed things up. Though not sure if many hobby machines would have the grunt to keep the work rotating.
Some of the hollow cutters you also see on the net are another option for that sort of size hole with the bonus that you get a big bit of usable metal from the waste rather than a barrow load of swarf