Oh dear… Well a bit late, but I’d say in answer to the question, “is there any reason not to use a transformer…”:
Both the lathe and mill would surely benefit from being hardwired to their own VFD. So I’d spend my money on another VFD and some pots/switches, to take advantage of all the features of VFDs – soft start, braking, reverse, speed control, low speed torque boost…
My lathe and mills are all run on VFDs, and even if I could get real three phase in, I wouldn’t change that.
Even better, if your motors are easily configurable, set them up to run on 230V and buy two standard AT1 VFDs. As I understand it, the step-up VFDs like you have are often normal ones modified with a voltage doubler at the input, so perhaps pushing the design a bit.