You might want to take a look at this thread. There are tools I, and other guys, have ground and shown.
http://hobby-machinist.com/threads/turning-tool-and-facing-tool-questions.36687/
You are right. A bigger lathe with more power and rigidity is more forgiving of tool geometry but a modified tool will cut even better, even on that bigger lathe. I have an Emco 11 lathe now but still use the exact same tools I used on my Sherline and they work great.
Tool geometry makes a difference because cutting forces are cutting forces and when we shape the tool to reduce those forces we cut deeper, size more accurately and finish finer. Quite often, a good tool will enable the user to double the depth of cut he can normally take on a small lathe like a Sherline.
I honestly feel that tool grinding is becoming a lost skill. Only us hobby guys do it much anymore so its sort of up to us to keep it alive. Dunno - you think?