Thanks for the amazingly thorough reply Monty, that's a great source of information. I think it would be worth sticking all this in a "how to" sticky post once I'm done as it would be a waste for all the info to be stuck somewhere in my thread.
I think I've addressed most of your points, especially the extra switch to isolate the whole caboodle - that's the first one on the AC line in my sketch on the first page. I'll be using an illuminated switch so it should be easy to see if the controller is energised or not. All the switches I've bought are 110V 15A rated, so that should be enough - the fuse (which I'll be reusing if I can) off the treadmill I scavenged is 15A rated too.
I'm replacing the flywheels with fans mounted to the motor shaft, but if I have trouble with cooling at low speeds I can always add a PC fan and wire it to the 12V supply for the tach.
Almost finished making the adapter hub to mount a 120mm PC fan to Jake's motor. Screwed up the first one because I was tired, but this one fits perfectly. Need to tap a hole and make a set screw then that part is done. After that I need to bore out the pulley to fit and figure out a mount then the lathe motor will be ready for wiring up. I'm not sure how I'll stop chips getting inside other than the chip shield I plan on making for the lathe, but I'll ruminate on that.