You have me a bit confused as to whether you're asking about 1/4 " seams or 1/4 inch between a seam and a quilting line.. lots of difference in my opinion.
Being a long time hand quilter, I wouldn't do any less than a quarter inch for hand stitched seams for a couple of reasons.. the main one being if you are making a quilt that will be used and washed, good luck with it lasting if you use less than that. 1/4" isn't many rows of thread in the weave of the fabric and less than that has the potential to ravel out and there go your seams.I don't understand this "tenting" you're getting with hand stitched seams either.. guess I'm just a bit dense today..
The only time I use less than 1/4" seams is with a mini or doll quilt that will not get the wear that a regularly used quilt will.