I know it's an old post, but I would like to add some comments on my recent experiences.
I have done some significant upgrades to my shop in the past couple of years, going through this process. Here's what I ended up with:
HF 20 inch drill press. I built a coolant and nozzle system, and added some lights. I'm going to build a swing out drill index arm (soon...) to encourage good habits of putting bits away properly.
HF 6x48 belt grinder/sander. Buy good belts (I recommend 3M Ceramic). It's a little under-powered, but like someone else said, it's very useful.
I use a Grizzly 14 inch wood bandsaw for metal, just use a good metal cutting blade. I like Timberwolf, but there are many good ones.
I also love my HF portaband and SWAG table. I use it all the time. Again, get good blades. I use 10/14 variable pitch for about everything up to 1/4 inch, and it just chugs away. Get a foot switch - crazy useful.
If you can't afford a good 2x72 belt grinder (I can't), then build one. There are plans online. I used the motor (and controls) from a free treadmill. 2+ hp, and it works AWESOME. You will not believe how awesome it is, until you use it. Highly recommend.
I'm pretty happy with the HF 36 inch metal brake, as modified. Again, just do a quick search - there are a few things that really need to be done to make it far more usable, but are cheap and easy to do.
However: if I was to do it again, I would splurge for the 48 inch finger brake. Yeah, it's twice as much, but as soon as you start using it, you realize how much more you can do with it...
Get a bunch of HF angle grinders; like 6-8 of the $10 ones (be sure to get the side switch, not the top mount one). Put a different disc on each one. For the price of one good one, you will save an enormous amount of time and energy in switching wheels. As a hobbyist, you can do an awful lot of grinding before you wear one out.
Same thing with pneumatic die grinders. Burr wheels, smoothing discs, etc. Just get a bottle of oil (I use ATF), and squirt a little in the air connector before using it the first time each day.
Get the biggest, best air compressor you can afford. Plumb hard-line all around your shop. Don't buy rubber hose, it breaks down in the sunlight.
I splurged last year and bought the biggest new Esab welder they sell... Multi-process, Rebel 285. I love it. But I wouldn't do it again. Don't get me wrong - there is nothing wrong with it, and it will do everything you want, very well (except TIG aluminum...). But I should have gotten the smallest one! And if I wasn't so impatient, I should have waited a few months and bought the 205, it does ac/dc tig, as well as stick and mig. (the others are dc tig only).
That said, I think I am going to get a cheap ac TIG machine (Primeweld 225). It has really good reviews, and comes with a top quality torch (CK flex). I don't need it, but I would like to play around and learn how to do it...
I have a good O/A torch set, and think it's more versatile than a plasma, but I sure would like to have a good-sized plasma... That I could hook up to a CNC table... :D
Oh, and a good welding table. I love my weldtables dot com, 2x3 one... But I need something bigger. But I can't justify their big ones... But my local steel yard does fabrication too, and for very little money over the steel cost, they are going to make me a 4x8 or 4x10 fab table. I would do it, but I don't have a straight, flat, square surface in the shop, so it's a lot easier to start with a known base.
If you notice a discrepancy between all the HF things and the Esab welder and Snap-on toolboxes, it's a matter of cost/benefit ratio. In my mind, I balance the relationship of price, perceived value, anticipated use, repair/replacement costs, and probably a bunch of other things I can't think of right now. Anyway - it's a trade-off most of us have to go through.
Hope this helps someone! I know it's pretty long. Sorry/not sorry.
Brad