Heh, I'd like to see someone try to drill with a 3"+ Forstner bit hand-held. They require an enormous amount of torque because of the huge surface area of the cutting edge. The biggest I have is a 2.5", and more than once I've had it grab a piece of wood in the drill press and pull it right out from under a clamp, either jamming it against the press' post or sending it across the room.
I guess to cut holes larger than the bar/chain width you could try to mount the guide post off-center on the bar, but I'm not sure if it would cut as well that way. I'm with Backwoods though - probably not something I'd use a heck of a lot, but it would be handy to have as an option, such as to take out on four-wheeler trips etc. for making impromptu campfire benches and the like. The beauty of it is not in its efficiency, but the fact that it's totally portable and negates the need to also pack around a drill capable of doing the same.