All of the systems listed above work fine, subject to the limitations noted. It's really a matter of choosing the most economical system for the application. In my shop for instance, I have VFDs, a RPC, and one static phase converter.
So let's look at my applications:
13x40 manual lathe, 3HP, static phase converter. This was installed almost 30 years ago, before the availability of inexpensive VFDs. In this application I don't need variable speed or a soft start so I have not replaced it with a VFD. If the SPC ever fails, I will replace it with a VFD.
3HP milling machine, single phase input rated VFD. This machine requires variable speed, dynamic braking, and full torque at any speed so a VFD is the logical choice. Because it's only 3HP, the VFD is relatively inexpensive and a lot of options are available. This also gives me the option of running the spindle from the computer if needed, but I normally run it manually. The rest of the controls on the machine are 120V and are literally plugged into a wall outlet.
CNC lathe, 10HP spindle, 15HP RPC. While it would be possible to run this machine on a single phase input, a VFD to run the spindle on single phase would be crazy expensive. Also, the hydraulic pump motor and the coolant pump motors are all 3 phase, so add in the cost of dealing with those. The 4 servo drives will accept single phase input, but will not perform at their rated capacity on single phase. So in this case it made sense to build a RPC to run the machine. As an added bonus, the RPC also runs the 5HP press brake motor just fine. Had I not had the RPC already installed, I would have used a VFD to run the press brake. The cost of a VFD is normally less than a RPC.
Air compressor, 5hp, single phase input rated VFD. In this case I got tired of burning up single phase motors every 2 years, so I replaced it with a 3 phase motor. I could have run the compressor from the RPC, but it made no sense to do so. No point in running the RPC to power the air compressor when other economical options are available, in addition the cost of a 3 phase, 5HP motor starter is almost the cost of a VFD, then add in the additional wiring. The air compressor is needed all the time, where the lathe is only used part time. I purchased a cheap 10HP, HY VFD that is single phase input rated. This has the advantage of a soft start so the starting current never exceeds the normal running current, I have it set to ramp up to speed over 10 seconds.
So as you can see, the choice of single phase to 3 phase conversion really depends on the application.
This was very helpful... Not the answer I expected, but very helpful.
I was going to ask at what point you go to RPC or DPC, thinking the decision point was based on number of and cost for VFDs. In other words, once you had enough machines that the number of VFDs cost the same as a RPC or DPC, you would just get one of those. Obviously, this would eliminate the benefits of the VFD's speed control features, but the machines were designed without that, so that's a bonus, not a requirement.
Based on your post and some other reading, the main indications for an RPC/DPC is if one machine has multiple 3 phase motors in it (like your lathe), or if it a machine sensitive to the high frequency noise VFDs create, like a CNC machine.
One thing that I don't understand is why you have to wire a VFD into each motor. I get that the benefit is the variable frequency, but could you use one 10hp VFD to run multiple machines like you can with an RPC?