The fantastic gizmo someone should build is a peg-maker (or peg-shaper) that's based on the inexpensive Dremel tool line. The Dremel rotary tool with
many attachments and bits, plus their little drill press, comes to about $150, and many people have them. This is nothing like a heavy-duty lathe, but
it can be turned into all sorts of cutters/shapers/sanders/routers, and it's just right for weekend luthiers.
On the photo A is part of the basic tool set, B is the little drill press (and C is misc electronics ;-)
A peg reamer costs $35-$65, and an adjustable peg shaver $50-150. That's expensive, especially if you only need to work on a single set of pegs.
Many people already have the tool - it can act as a sander, plane, drill, cutter - and the little drill press is only about $35. It can hold the tool
on its side as well.
If there was some way to make the Dremel do part of the job, maybe with a simple jig that would hold a peg at an angle to match the taper, one could
turn the peg by hand and use the Dremel in its "drill press" to traverse and shave the peg, that might be a nice way to avoid buying more single-use
tools.
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