Lazlo, A VersaMil can THREADMILL, but I don't think it would be an effective thread grinder. I suppose in a pinch, you could dress a wheel to the correct angle, and thread grind on a lathe, but what for. I don't think the results would be worth the effort. You're right about the creep feed, that's just what you have to do, but you can traverse the work faster than milling. I suppose you could grind in back gear, at around 15 to 20 rpm, but with the smaller wheel, I doubt you could get the surface feet up fast enough. As long as you can pivot the grinder head for the helix of the thread though, I bet it would work. Frankly, I've never thought about trying it. Thread grinding needs copious amounts of OIL applied to the work. The mess you would create on a lathe, no matter what the results were, wouldn't be worth the extensive clean up. Seems like no matter how careful I am, operating my fully shielded thread grinder, by the time I'm done with some parts, I reek of oil. It's in my hair, on my face- it's everywhere! I see these machines without covers, and collectors, and know the operators when they go home for the day, have got to be met by a disgruntled wife.
I have real thread grinders, that use 19 inch diameter wheels,so I'm spoiled. It's really nice to have the real deal. Back in the bad years of 2001 and 2002, while a lot of shops were getting rid of their machines, I was buying them. After the first few batches of $8000.00 ground leadscrews came in my door, the thought of making them myself was really appealing- especially since thread grinders could be purchased for a tenth of what I paid for one run of screws. Over a period of four years, I purchased 7 thread grinders, a couple are junk, three are nice, and one is almost the ultimate thread grinder. The method to my madness, is set up each grinder for particular threads- and leave it. One of my thread grinders incredibly enough, is set up for tap grinding.