I think that you are missing a couple of points.
Firstly, all this restriction suggested about power of motors is wrong. within reason, the bigger the motor the better. If you follow one worker, he had TWO motors for his ML7 and one was a full horsepower.
Seemingly, he made a substantial income screwcutting after he was kicked out of his chosen job!
There are endless permutations for good but inexpensive motors. I have a bloody big and heavy motor on my tool and cutter grinder which is doing the same job as the one that I gave to BaronJ which was a 2880rpm 1/6th HP one. The cost of mine on the Clarkson was all of £25! My Quorn originally ran on a 1/4 horse motor that cost nothing as I took it out od a scrap washing machine. I;ve still got it somewhere and before all that, it powdered several lathes- and one was a Zyto very similar to yours.
Again, as for flinging oil from a spindle, I hate to tell you how much I paid for a rather posh Myford- and it flings out oil tpo everything and person - in the four Northern Counties!
If you want an oil free lathe, buy a Chinese one but- once it runs, the cutting fluid with centrifuge- like my Myford Super & with gear box, power cross feed -painted a bilious shade of green and will need a mortgage if you want it!
Think it out, plese
Norman