Thanks for all your comments! Interesting reading, I'm obviously not the only heretic experimenting with carbide inserts on a smallish lathe in a home workshop.
My original question was about the economics of producing and selling these tools. I don't know exactly how the things are made, but I imagine it is a pretty specialised process, and I would be surprised if any are manufactured specifically for the (tiny?) hobby market – particularly if they simply don't work under the conditions we work under. No repeat business. JasonB's suggestion that they are overspill from low-end Far Eastern manufacture makes sense to me. I have seen some pretty awful finishes on Far Eastern metalwork, but didn't put two and two together.
Bob Stevenson – thanks for the pointer to the cheap tooling that works for you and your fellow horologists. I shall follow that up – if you've had positive experiences with these tools, that's a useful recommendation. It's a pity that the guy who made the video made some mistakes and perhaps isn't the best advocate for the tools. Not your fault.
My own flirtation with carbide began with my first lathe, a Proxxon PD400, similar specs to a Chinese mini-lathe but a less rigid saddle/crosslide arrangement. I wasn't getting a good finish on aluminium with HSS so I tried a CCGT insert tool which worked well. Then I tried it on steel – I knew no better – and it worked. That was probably only a material heresy. Now I know I'm not supposed to use carbide, but willfully persist with my evil experiments, my sin escalates to formal heresy, with peril of excommunication and perdition. 
Thanks again for comments,Robin
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