Rich,
Seems to me the solution is an encoder on the spindle motor and a servo drive. An encoder can be put on just about anything.
The servo drive automatically does all of the stuff MACH is thus far been unsuccessful doing, i.e. compensatng for the motor slow down under load.
I can cut any thread with my 4th axis including tapered NPT and re-cut the same thread over and over with perfect registration.
This scheme would also allow a drill, small milling head or engraving spindle to be mounted on the cross slide for additional machining capabilities.
What would really be slick would be to take an X2 head and column and mount it on a slide behind the lathe. Bada-bing! Mini-Machining center II !
Downside, of course, is cost.