You can drill through tile. Take your time and go really slow. Let the drill do the work and don't press to hard or you will crack the tile.
https://www.amazon.com/Bosch-Piece-Glass-Storage-GT3000/dp/B001GNC8RS
SLOW......with minimal pressure....Did I mention that you need to go SLOW?
If you wanted to go bigger than a hammer drill then depending on your task I can recommend the Ryobi ONE+ HD SDS P223 and Bosch SDS Plus Bit Set. I've been using these to drill holes for 1/4" Tapcons into 50 year old concrete and it's like drilling into nothing. Takes 2 seconds and zero effort. At least for the small holes a Tapcon needs. I haven't tried bigger tasks yet to see how it performs but if you were curious I could try to find something to test it on.
The only thing I don't like so far is that the depth gauge is part of the front handle and doesn't rotate independently so you can't for example have the handle on the bottom or left but keep the depth bar on the right side.
If I didn't get this my next choice was the Bosch Bulldog or Bulldog Max. Ultimately I chose the Ryobi for three reasons and don't regret it at all:
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A basic screwdriver set will get you 99% there. I use something like this: https://www.amazon.com/AmazonBasics-Screwdriver-Bit-Set-48-piece/dp/B07S751RCQ/
Other than that it depends on your build.
That's how some people do it. There are also large hole blades designed for use with stone, like these:
https://www.amazon.com/DIATOOL-Diamond-Drilling-Granite-Concrete/dp/B07K2XFD9F?th=1
It all comes down to things like how much time you have, what tools you already have, how much you're willing to spend, how deep the holes have to go, etc.
http://www.amazon.com/Diamond-Cylindrical-Jewelry-Gemstones-Lapidary/dp/B00CNXFUBG/ref=sr_1_1?ie=UTF8&qid=1445265770&sr=8-1&keywords=diamond+dremel+bits I have a set along these lines that I picked up from a hardware store. They're made with tons of tiny little industrial diamond pieces and work wonders for clean grinding on model kits and other projects
Back when I used the hobby knife, i'd clean it up with a sanding stick like these http://amzn.com/B00G13A7F8 from the hobby store