There is a need to differentiate between "level" and, yes, "level".
The lathe must be set 'level' to turn true to close tolerances, but that 'level' doesn't have to be level in the sense that a spirit level will produce 'level'. As has been stated above, a lathe on a ship can be 'level' and turn true even when the ship is at an angle of heel, or rolling, and the machine is anything but 'level' according to a spirit level!
It's more to do with lack of bed twist, and correction for it, that will enable a lathe to turn true, rather than level in the spirit level sense, as I understand it.
No doubt someone will shoot me down now, but it's New Year's Eve, so who cares! I do agree with the sentiment above though, that quality work needs quality installation; to my mind it is all part of the 'striving to work to the highest standards one can' attitude.
Hope that helps,
Chris