I think most of the CNC lathe operators out there would be VERY surprised to find that they are not supposed to be using coolant. So would the whole of the Coolant Industry as well.
Coolant. Flood, or none, intermittent coolant can cause problems with some carbide grades and material combinations. Some. Not all. Applying some coolant or cutting oil to the work has inevitably improved, rather than made worse, the output on a small lathe, if the material is one that would normally use a coolant or cutting oil.
Most of the problems you seem to attribute to the use of coolant, are problems of pushing the cutters too hard, generally beyond the speeds and feeds that are reasonable. Especially in a home shop or gunsmiths, non-production shop environment, where set-up is the time suck and the cut is often a very small portion of the work.
Long curly chips jam up the chip conveyor, makes for a lousy return on investment while the guy or gal operating it cleans out a rats nest instead of making good parts, in a production environment. You can get past them if you have the horsepower, but you have to deal with them one way or another if you cannot push the cut hard enough to make a chip that curls and breaks instead of becoming a mile long razor blade.
Do some research into the heat treatment of High Speed Steel. You won't soften it at the tip, in use. You can, however, blunt the edges, by pushing it too hard and by exceeding the work harden your workpiece, and consequently grind the end off the cutter, if you are turning materials that are subject to work hardening, such as some stainless alloys, and Titanium, in particular. Ti. with HSS is a right joy (sarcasm) when you are pushing too hard, or not pushing hard enough. Getting past the hard surface layer of Ti. oxides is a Mo-Fo too. Great when it's cutting well, challenging when it's not.
Most, if not all, of what you say here, does not jive with my experience.
Cheers
Trev