Wowsers - what a fantastic piece of kit!
I have vague memories (10-20 years old) of a yarn winder that a friend of mine had. She would frequently buy yarn in large skeins - think of a 1 foot diameter donut of something like 1 or 2 inch minor diameter. Definitely in need of winding into manageable balls! The skein would be placed on an expanding-spoke spindle something like the bulk wire measurer/winder at Home Depot.
I also seem to recall that the yarn winder had a guide loop for the incoming yarn, so the strand would align with the center of the winding stem.