If I had to choose the shop tools I couldn't live without, I guess my compressor/air tools (primarily, die grinders) would be at the top of the list, along with my (several) 4 1/2" angry grinders.
My most-used angle grinder has a 1 mm carbide cutting disc on it, which I use for cutting, well, everything, from steel to stone. It cuts through steel like butter, and I buy the discs about a dozen at a time. I also have an angle grinder fitted with a flap wheel, and another with a coarse sanding disc (when I REALLY want to remove material quickly).
As for my compressor, I use it every single day. There are endless tools available (cheap, too, if you're judicious, or if you have Harbor Freight...which we don't in Canada). An example would be an air riveter (got one of those, too) - not only does it make riveting ridiculously fast, every single rivet set is perfect. And, you still have one hand free to hold the workpiece with. My die grinders get used every single day, too. I have one fitted with a 2" twist-on for attaching sanding discs, flap wheels, etc. Another, I have fitted with a rotary file, which makes short work of enlarging holes, shaping holes, etc.
In getting a compressor, bigger is better. I have a 60-gallon, 2-cylinder single stage, which keeps up with every air tool I own, and then some. Keep your eyes peeled for used ones - I got mine from an auto shop that bought a much larger one. IIRC, I paid $150 for it. With limited space, I'd mount the compressor outside with a cover of some sort, & plumb an air line in through the wall.
Just some thoughts....
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