Well - I drilled one panel. Did all 1-1/8" holes with the hole saw and the 5/8" holes (for cone buttons) with a step bit. Overall, I actually like the holes the step bit makes much more. MUCH cleaner, less 'chatter', etc. But, I can't see the bits I got lasting for 3 panels so I went with the hole saw. The holes are not 'perfect' - i.e., the alignment is 100% perfect - but for something I did by hand myself on a drill press I think it's good. Only one hole/button may have an issue and need some 'structural support' added so the button doesn't slide. Oh, and two empty button holes are going to get the washer/JB weld treatment just for structure/ensuring the art doesn't get ripped.
In case anyone's wondering, I used an 1/4 inch hard board overlay to align the holes, get things setup, and get the hole saw aligned (from the top). I used wood supports under the panel and drilled into it when necesary, but having it behind the metal didn't actually do much aside from provide support. Also, cutting oil 100% helped the cutting. I even put it into the 1/4" hard board holes to assist there. Should keep the blade sharp longer and usuable for all the cutting I need to do.
Thanks again all for the help/advice!