The Profile of surface tolerance is more explicit than a limit tolerance and position tolerance would not really be applicable exclusively to the "flat".
I assume that the datums A|D|B are appropriate to orient the flat clocking/holding feature.
As far as the profile of surface tolerance .002 which roughly translates to +/- .001 the manufacture-ability depends on the process employed to create this feature. I tend to agree that a profile of .002 seems a little tight for this particular clocking feature.
The position tolerance for the hole is dia. .125 at MMC and .135 at LMC which is quite generous and large with respect to the Profile of surface tolerance on the flat .002. - seems an odd combination.