I'm no fan of the static converters, believe me - they are essentially the passive components of a rotary converter packaged to use your lathe drive motor as its own idler. Two problems with it - you lose a third or more of the normal torque capacity and you'll need two different values of capacitors to properly tune the HLV's motor for both low and high speed positions. Easier to get a 3hp idler and be done with it. Having said that, there are a couple of reasons I use a dedicated VFD on the Hardinge. The first is that the 1hp HLV-H motor is not in that huge 5hp frame for nothing. It is physically larger to permit balancing of the rotor to 0.0005 ounce. This not only makes any vibration in the motor virtually immeasurable, but it also makes any direct replacement @#!%% expensive. Most of the later VFDs treat the motor like a baby, constantly monitoring it for problems, ramping the speed up and down rather than popping the power to it, etc. With a motor that expensive, I think it makes sense to provide the extra protection a good VFD offers. With patience a late 460v 1-2hp VFD will run about a hundred bucks on ebay (I'm not talking the cheaper Dealers Electric units, either.) If your lathe is 220 and you already have the VFD then I'd use it. Lot quieter than a rotary, too.
The other reason I like a VFD is that occasionally I run into a situation where I need the lathe to turn very slowly, such as in winding coils or making a spring. Pretty easy to do with a VFD cranked back to 15-30 Hz.
Best wishes,
Mike