You can get pretty much dead-nuts even with the Starrett 98. I have a 98, and a Starrett 199, and a Swiss level that is .0002 in 12". As an experiment, I once leveled my AA calibrated granite plate with the Starrett 98, and then checked it with the more precise levels. The 98 had gotten it to within .0002.
The key thing is that the base be dead-flat. I hand-scraped my 98. I bought it new, and it didn't need a lot of work, but it is just ground at the factory (not scraped in like the 199).
A good level vial is an extremely repeatable thing. As long as you have it flat, level in the orthogonal direction, and view it from a consistent angle, you can reliably eyeball 1/5 of a vial division, or better. To get a feel for a level, level it on something that you can fine adjust the height of one end (for example, I have a micrometer adjust height gage thing I can put on end on). Then put a tenths dial indicator on that end, and adjust it up a tenth or two at a time and observe the level.
In any event, Starrett 199 sell every week on eBay for $150-$250, so consider a used one, though you may have to calibrate/scape a tiny bit to bring it to like-new.
Moore and Wright (sort of the British Starrett) makes a level equivalent to the 199, and they always bring much lower prices in the US. Recently a couple of them, brand-new, went for ~$70 each. They only come up every couple months probably, but you might want to create a saved search to catch one in the long run. The more obscure things also sell for less. My fancy swiss job retails for about two grand and I picked it up on eBay for $200.
And of course, it the lathe cuts OK, it's level enough.