I'm half drunk and feeling feisty, so read this fast. I might erase it in the morning.
You can do a lot with the mini-lathe using big machine techniques. Fixtures and supports are the answer.
For instance, a chuck is not the only way to hold a light. An expanding arbor with an MT3 shank, for instance, can extend half way up a 2 D maglight and will be held firmly in the headstock. Then you can do inside threading.
A steadyrest will hold the light safely while it's held in a chuck. A follower can be used too.
You can use a threaded fixture held in the chuck and simply thread the flashlight onto it.
Need an extra inch? Remove the trading indicator.
Need yet another inch? Move the cutting bit to the right side of the tool post.
Need to bore a long piece? Clamp the piece to the compound and put the boring bar in the chuck. You can fit up to a 3/4 inch diameter boring bar through the chuck. My 3/4 inch bar is almost a foot long. Advance the boring bar a few inches at a time.
As I said, the 7x12 is not ideal for larger lights, but with some ingenuity you can make it work. But a bigger lathe is better.
So there. Thhhhpppt!
Daniel
P.S. That was a raspberry.