No, don't give in!
I'd say there is little if anything fundamentally wrong with this lathe but really you need someone, not necessarily but preferably a Myford owner, even better an ML7 owner, visit you to help you examine it carefully and sort it out together. Hence advice a while back to join a local model-engineering society if there is one near enough.
As with any machine, you can "sod about" and put things blindly wrong; or be more systematic and see you've put it right. It is good practice to alter related parts in no more than one step at a time as far as possible, testing as you go. Especially so when the faults are not obvious but might be no more than small mis-adjustments, a single part loose or worn; or an incorrect replacement (as that belt might be).
Don't give up on it. Your photo shows that buying a brand-new machine would not have stopped you turning that bit of unknown steel bar into a rasp, not good for the poor machine, never mind you.
If you don't already have these, as others have advised, get the proper handbook for the lathe, one or two turning "self-help" books; a bench-grinder and a small oil-stone, and some HSS tools. You can probably buy a basic grinder from any tool-factor; the other goods from the traders who advertise here and in the magazines.
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I'd recommend you don't try using carbide-tipped tooling at this stage. They work very well but the inserts are pricey, fussy, fragile little things that demand some machining experience from their user. (I use both HSS and carbide, governed partly by the material I am turning.)
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Consensus on this thread, and I agree, seems to be that you've bought a basically sound machine that may need setting up correctly and might be suffering from small, arcane servicing problems. They are not yet apparent to you only because by your own admission, you are not yet sufficiently experienced with it.
Don't give away too much, but what area of the country are you in?
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Hopper –
You sent me down the garden to verify my ML7's belt adjustment ! Yes – the value of a second opinion: it all tallies with your photos. Phew! 
Edited By Nigel Graham 2 on 03/06/2022 15:45:52