Wreck, Add one more requirement. Must have a 5C collet taper cut in the spindle without the need for an adapter.
I dispute that a true hobbyist would never consider quality and the cost. I think many of us do. I appreciate that are those who cannot afford it and also those who for their own satisfaction would rather buy an old machine for it's history, and do it up.
A fairly decent lathe can be had for $5k or less, especially if you look at the Taiwanese machines currently available. I have looked very hard at the chinese ones available here in down under, and I wouldn't waste my money, sure if you just look at the specs, they have extra bells and whistles, but what's the point when you have dismantle the machine and fully rebuild it before you can use it.
Variable speed, particularly if it's single Ph, and DRO are not necessary in my book. Better than .001" accuracy and repeatability are very important. inch and metric threading, Also important. Spindle brake Yeh maybe.
Micrometer carriage stop, etc. etc. I consider these items as optional extras, I think many hobbiests like to make their own.
The 5C collet I prefer a 5mt with draw bar, much easier to get an assortment of tooling, and generally cheaper. All of my tooling is 5mt. If fact I don't think I've ever seen a 5c collet except in catalogs, perhaps it's an American thing.
All of the above can be had for $5K or less here and I'm sure in the US also, look for quality, but just avoid going fancy. It's like a lot of things, people will pay for a look rather than a spec.