Having just cleaned and painted a lathe, I agree 100%. I was surprised at some of the places that were packed solid with chips and hardened oil. Every DRO installation I've seen and used had the scale on the back side of the bed.
Bearings: I have not owned or used a babbitt bearing lathe. What I have read about them from people that do is how nicely they cut if they're in good condition. Some of those comments have been here on Hobby-Machinist. The consensus was that they are extremely smooth and exhibit less chatter than some roller bearings. Maybe someone with first hand knowledge will comment. Maybe just buy the headstock and set it aside "just in case?"