The machine, itself, is the 'low cost' part of this equation. I easily have 3-4 times as many $$$$$ into tooling, tool holders, measuring tools and all the other stuff needed to do the work. So, this is not exactly a 'low cost' thing to get into.
No doubt for a real shop. I do not find this to be the case by any means for personal use. Or at least it doesn't have to be.
Having a bore of 1.5" is the ticket to shorten the bed length. However, I wouldn't recommend anything less than a 12x36. I've seen old lathes on CL and ebay but they don't have the bore size and really do they then have the length for steady rest chambering. +1 on the gear head for changing feeds and threads