The 0.1 number comes from Wildner H., Eisen und mangan in Brauwasser, Brauwiss, 14: 101-106, 127 - 130 1961. This is consistent with what you quoted but it is not a standard - just the opinions of the two writers. In brewing there are many, many factors and if someone published "iron should be less than 0.1" or "calcium should be at least 50" brewers tend to cleve to those numbers and they propagate from book to article to book even though they may be (in the case of calcium at least) inaccurate.
Negative effects of iron on brewing such as hazy worts, 'enfeeblement of the yeast', impaired colloidal stability, and problems with color and flavor have been described.
I don't think iron will cause harsh bitterness. That is usually a result of too much hops, high kettle pH and too much sulfate in the water.
It is pretty easy to get rid of the iron in a small amount of water. Aerate it thoroughly to turn all the iron into Fe(III) and if the pH is low, add a wee bit of lime to get it high enough that the Fe(OH)3 precipitates. Then filter through clean play sand. As you are buying a test kit test before and after and brew identical beers with and without. If removing the iron improves the beer then look into an iron reduction filter. These do what you did manually but often use 'greensand' rather than play sand and use KMnO4 as the oxidizing agent.