Just to clarify--I don't print the decals, I just do the artwork and provide vector graphics to a printer. My preference has been Fusion Scale Graphics--they do a great job--but several others also do custom printing. My understanding is most of them use high-end CMYKW inkjets (or lasers? I'm not sure). A lot of my preference for Fusion has to do with the thinness of the film and the service. I find their white printing is excellent and opaque. They also do metallic colors and masks, though I haven't tried to make either.
The issues I occasionally notice, especially with very fine details and small lettering, is the artwork pushes the technology to its limits. The calibration of the machine has to be perfect. When printing light colors like yellow they do indeed seem to use a 2-pass process with a white background going down first, then the yellow on top. If it's off a micron, there can be "shadowing" -- an effect like the numbers on an aircraft carrier with white on black. Also, sometimes the visibility of dots of blended colors (CMY) are visible. By contrast, I believe Microscale screen-prints all of it's decals using solid ink colors so there are no CMY artifacts. But of course custom MicroScale decals are expensive and you'll have a steep minimum.
Here's an example of a set for a 1:450 GG1. To put the size in perspective: the ruler in cm and 1:220 feet, and that this entire sheet pictured is about the size of a credit card; the stripes are about 1mm thick. At normal viewing distance the yellow looks fine and the red stripe crisp; But zoom in and you'll see dots in the yellow to darken it to achieve the shade desired, and bumps on the side of the red stripe because that's the limit of the printer's resolution, along with white visible behind it to keep it a good solid red. The stripe edges in the artwork are straight-line vectors.

Then close up:

As suggested by
@randgust you might find the right spacing of an N scale stripe and/or cut them down as needed.
All that being said: Printing an A6 quarter sheet is around $10 so.