That's actually not a 12" lathe, it's a 6". They are incredibly handy; I use mine 2-3 times a week. Once you have it set up and working they make themselves useful for just about everything.
I have a slightly different vintage Craftsman/Atlas 6", and I love it. It was actually my grandfather's. My dad refurbished it for me and gave it to me about 7 years ago. I would clean up that lathe, replace the bearings in the headstock, and get a Phase II QC toolpost for it and use it. They really don't take up that much room.
They are not frusterating to use unless you don't know what you're doing or you are trying to do more than you should with a 6" lathe. For turning small stuff they are fantastic.
Here's mine:
If one gets creative enough it can even be used to headspace a barrel for an L1A1.
For reference here are my dad's 12" lathes, you can see how much larger they are (look at the chuck for instance)