I'm running a Sherline 4400 Lathe, (17"x3") with the milling machine arm attachment.
Handy, small, big enough to do lots of little projects, not big enough to handle rifle barrels (spindle inside diameter is less than .5") It's quite accurate, and I'm pretty impressed with it. Also upgradeable to CNC when money allows.
Has threading attachment, and in my view, the $14-1500 or so that I've dropped into it so far (including the brik-n-brak bits like collets, mill arm, 3 and 4 jaw chucks, risers, mounting board, etc...) has been good value.
Remember, if you buy a bigger lathe/mill/etc, you're going to also pay much more for your accessories too. I got a package of twenty 1/4" end mills on e-pay for $30. My 4 jaw chuck cost me $125 or so....how much does a 4-jaw chuck cost for the bigger lathes?
If you don't need to go big, think small. I can put my lathe on a shelf in the workshop and free up the bench-space again when I need it.
NS