Apparently the smaller models are not able to cut SS although they are fine with plastics and aluminum...I could be wrong...I actually asked about the 7x10 a while back...on the other hand the Taag specifically says it CAN cut SS
I don't have a lathe(yet...) but i did some research on the subject recently.From what i found on the web the main problem with SS(and there are many kinds of SS) is not the size or power of the machine but the cooling of the bit.To cut steel you need very hard bits(whas it carbide?) which are very fragile and sensitive to temperature changes,serious steel cutting machines use a refrigerating circuit that pours coolant on the bit continuously while cutting,this coolant is collected on a tray under the machine and goes back into the circuit.But as i said i don't have any hands-on experience with this...
I liked the Sherline lathe a lot,pricey but sexy...