Same boat here. The Kress looks pretty attractive (dual nose bearings and all) and is available for a pretty good price from many dealers.
I had retrofitted my Proxxon spindle with a hybrid ceramic nose bearing and was using it exclusively with 1/8" shank tools with distance rings for a mini-TTS experience (i.e. pre-set tool lengths in the tool table) with great results, but I was using it with coolant and apparently didn't clean it off well enough before I put it in storage, and the spindle nose rusted in the meantime. Not too badly but I will give electrolytic rust removal a try.
But I'm seriously thinking of moving up to either a Kress 850 or 1050 with a homemade bracket.
Machining with a .020" carbide endmill in aluminum at 4500rpm and 0.8ipm is for the birds...