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Most lathes commonly referred to as watchmakers lathes are of this design.
Watchmakers lathes are delicate but precise metalworking lathes, usually without provision for screwcutting, and are still used by horologists for work such as the turning of balance staffs.
Any serious reduction in size will only have people complaining about the cost of watchmakers lathes and microscopes, I know what these cost because I do repair watches in my spare time.