Many thanks for the input gents, it has certainly given me something to think about, and a few things to research in the interim! GLCarlson would you have any suggestions for lathes that offer similar features and in a similar price bracket to the Grizzly that are not "Chinese" made. Are the Precision Mathews lathes any good, the PM1340GT model looks interesting?
Unfortunately, pretty much everything in the new, under $10K range manual is Chinese iron (and a lot above that-not much iron being poured in North America these days). The quality is whatever is inspected in. Grizzly does a reasonable job at a specific price/performance/value point; Jet is perhaps a cut above that, and Wilton even better (in my opinion), but the designs are essentially identical. There is a difference between Taiwan and mainland (Taiwan is usually better). If you follow the hobby magazines (Home Shop Machinist, etc) or forums, you'll find a regular stream of "how to improve a Chinese machine" articles. I believe that's both diagnostic and prognostic. After owning one of them (a Rong Fu round column mill) I decided never to buy straight Chinese brands again. I will buy Chinese manufacture with first-world quality control (example: Tormach, which is superb and has legendary, best-in-class product support).
So. Two options to recommend. By all means look at the Precision Matthews (the company has a fine reputation). And look at the new South Bend offerings (maybe the heavy 10), which has been revived by the owner of Grizzly but is aiming at a more discerning market. And, as above, Jet or Wilton- again Chinese, but marketed to a more industrial target with higher expectations (and, probably, more powertrain choices).
The other option is to seek out lightly used earlier production. Monarch 10EEs are popular (e-bay had a glorious rebuild for just on $10K not long ago), older/bigger S. Bend, etc. I have a 1978 Standard Modern that I bought 20 years ago that had perhaps 500 hours on it when purchased. That's a fine option for big, heavy industrial base countries, but hard outside N. America and parts of Europe and Asia, so it may not be much help.
A few final thoughts, after a few decades of shop-building. First, pick a work envelope and stick to it. Always buy quality machines. Never buy a machine that needs work as received. Every time I've broken one of those rules, I've paid for it- both time and money- and (so far, always) regretted it. A marginal machine is worse than none at all.
One final thought- your implied work envelope/shop philosophy is, I think, a good one for a generalist/hobby shop. Smaller (Sherline, Taig, etc) are fine for modellers, but just too small for most of us. And multipurpose machines (Smithy, etc, that try to be Emco-Maiers on the cheap) are tainted with the stench of compromise, promising to be all things to all people while delivering modest performance and low rigidity. Avoid the "everything" machines- or, at least, understand what you are getting.
Good luck. And do tell us what you ultimately do.