Sounds like you got some bum lumber there in a way. I mean that is a little small, but you have to remember too this wood is designed for framing and home construction so an 1/8 or a 1/16 really does not matter much in that application.
If you have ever been in a sawmill you will quickly understand how these sizes get jogged around some. There is a sawmill near me that produces 675,000 board feet of lumber a day. I was awe-struct when I saw a log about 3 feet in diameter get passed through the headmill. This was 30 bandsaw blades set 1 inch apart. There was a loud whine, a crunch, and then 3 seconds later 30 boards scattering on the bed chain with another log coming right in behind it. These modern mills convert logs to lumber in seconds now...
As for strapping, that is another whole story. Strapping is merely converted waste into a usable product. Its crap wood to start off with and crap wood after its made. Now keep in mind 1 x 3 strapping is DIFFERENT from 1x3 boards. The latter is graded according to NEMA and other wood governing associations. Strapping is not graded in any way.
Now I can buy strapping from Ellsworth Building Supply and their strapping consists 1 x 3 boards, with sharp edges made out of White Pine. That is just what they have for strapping. Now if I go to Buxton Services, I can get strapping that is 1x 3 boards, but has rounded edges and is made out of Red, White or Black Spruce.
Personally I prefer the rounded edges when using the stuff, but that is just me. Still I am concerned about a trend starting where framing lumber gets "nominally sized" even more. What's next our boards being 5/8 of an inch thick instead of 3/4?
I have no intention of traveling from birth to the grave in a manicured and well preserved body; but rather I will skid in sideways, totally beat up, completely worn out, utterly exhausted and jump off my tractor and loudly yell, "Wow, this is what it took to feed a nation!"