I disagree.
.0001 of backlash is too much and needs to be compensated for. Imagine that your machine has .001 of backlash and your spindle has .001 of runout. The thinnest border I was able to put around a part with the Taig was .008" (I think). With my new machine, I successful put a .001" silver border around a part, just because I wanted to see if I could do it. I built some pretty fancy cues on the Taig mill. I also had my machine dialed in very well, which I spent hours doing every couple of months.
Even with the machine running as well as I could get it to run, I know that anything I were to do on my new machine would come out better. Keep in mind that I didn't have an NSK spindle on the Taig. I had one of those wolfgang spindles from Ebay. I tested the machine with the Kress and the Wolfgang. The Kress has no business being used for inlays. It is junk. The Wolfgang has low torque and lower rpm's, but if you go slow enough, it works fine.
One thing to keep in mind is that the more you move, the better your chances for error are. I tried to keep all of my programs working within a 1 inch area to help minimize movements. If the butt had 3 sections, I would inlay the middle first, then move + or - the desired amount and re-zero the machine. I also would never rotate the cue until I was done with that section. Even if that meant changing cutters 20 times.
My new machine, I know 100% that I can move 30 inches away and change directions numerous times. When I tell the machine to go back to 0, the indicator will read .0000. I still do my programming the same way that I used to just in case.
As Jim said, it's a good starter machine that you can get into for not a lot of money. You will likely outgrow the machine at some point though.