i used a spade bit for my first few control panels, and they work OK, however when i made my latest one, i spent the money for the forstnet bit at lowes.  it made such beautiful, clean holes.  i was very impressed with it.  i dont know how well it works on plexi, since i cut my plexi with a router, however i can tell you that spade bits will destroy plexi.
personally, i say it is worth the cost...they make such nice holes.
if you are going to use a spade bit, don't drill the entire way through the wood/mdf...drill like half way through,  far enough so that the center point cuts through, then flip it over and drill the rest of the way.  it takes a little longer, bit it will keep the wood from splintering.
with a forstner bit, you dont have to worry about it.