Greg,
I have seen NO honed two stroke cylinder that is truely round. Ground cylinders yes I did see. The out of round condition is due to the fact that a hone needs pressure (surface pressure) to take off material. The pressure is applied inside the hone. When the hone passes over the ports, there is less wall to resist the pressure, and the pressure per unit of surface increases. THAT is where the hone takes off more material, and produces out of round bores.

grinding is not the end solution either I can assure you. When the wheel is new, all is well. But operator mistake, and the desire to let a wheel last just a bit longer can cause so muck local pressure, that the nikasil layer delaminates from the base substrate. This is invisible to the quality inspector, but the end user eventually finds out the hard way. I still have a cylinder on the shelf that started cracking the nikasil layer without major damage being done, the loose parts still in place.
Yet I believe that grinding is best. If done well, expensive for sure, because diamond does not realy cut, it gouges the surface, so the operator has to go slowly about his business. That also holds true for diamond honing. Production pressures spoil the brew.