Keep in mind that you can make small parts on a bigger lathe, but you can't make big parts on a small lathe. I started out with a Taig micro lathe and added the 1" risers to increase the capacity. You can do a lot with one of those. They're very well made, but small and completely manual.
After a couple of years, I upgraded to a 7x12, with a leadscrew and change gears. It felt huge. Ironically, I had to use the Taig to make a 5" faceplate for the new 7x12. A few years after that, I bought a used Hercus AR. That's an Australian-built, licensed copy of a Southbend 9A. An excellent lathe, and one I intend to keep. A couple of weeks ago, I added a Swedish-built 14x39 about 70 years old, but probably used less than 25 years.
So, you can see the progression. This addiction of ours leads us ever onward to bigger and better machines. The usual advice is to get the biggest lathe you can afford. On the other hand, if you know that you will only ever be making tiny, precision parts, something like a watchmaker's lathe may be perfect for you. You need to decide first what you will be doing, but also where you might end up going as you progress.
Sorry, no easy answer. Just a few thoughts to add to your process.
Oops. Missed your second question. Depending on the size of the dovetails you have in mind, a milling attachment on a lathe will do what you need. For larger stuff, a milling machine will be required.