I have been machining acrylic for most of my career.
If done properly, it will give better results than polycarbonate which is softer and scratches quite quickly due to that characteristic.
Stepping up drill bits and using sharp regular bits is why you are cracking it.
Use the correct size for the finished hole size.
Buy a negative rake plastic bit, higher speed and slower feed rate. Dish soap and water makes a good lubricant. Or use a high speed dremel or drywall cutter with a spiral up router bit so you can control feedrate when drilling without drill press.
Usually it is the multiple stepping with a very sharp standard drill bit that cracks the acrylic because is acts like a wedge and sucks into the material faster than it removes it.
With proper blade it also cuts cleaner than polycarbonate on a table saw or when template routing. I CNC route both and also aluminum. And you can edge polish and solvent bond with nice strong joints. Which is not possible with polycarbonate.
Polycarbonate does make nice bullet proof windows if about 1" thick.
FMH
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