Small, yes, but you'll find it to be amazingly capable I'll bet!
I have a "Tiny" old German Watchmaker's Lathe (Leinen/Boley) that I've managed to turn out some pretty nice 1/8th scale cannon and many small steam engine parts. I've also spent some time with a little Unimat lathe and found it to be quite capable as well!
I've heard plenty of good things said about Proxxon over very many years!!!