The P17 has no recoil.Your concern is that it is plastic and you do not want to put undo strain on the mounting grooves by pushing on the scope and/or red dot or laser when closing the action. You notice my red-dot when mounted is far forward so I can still push on the barrel when closing. If I had to push on a scope to close it I am sure the plastic would not last long. The groups you are now getting with you red dot are as good as you can expect from a pistol of this cost and value.
Do you wear glasses? If so, take them off and see if the 'blob' shrinks.
PROBLEM SOLVED
Everyone needs one.
Just ordered the P17 from the bargain gate-----MidwayUSA.