PaperPrincess

The problem you are going to have with a 'sewing' machine type embroidery machine is that you are going to have a difficult time getting some of the made up items into the hoop and then onto the machine. Once on the machine, you can't leave it because the item may get hung up. The dedicated 6 (and up) machines are constructed so you can get a bag, shirt, cap etc. easily on the machine and you don't have to stand right there and baby sit it.
If you do decide to get a domestic type, look into embroidery only machines and see if you can find one where the hoop is attached on the right. My first machine, a Brother PE180 did this, but the hoop was very small. With the hoop attaching on the right, you could embroider bulkier items. I don't even know if they make a machine with a larger hoop that attaches this way. All the other machines I've seen have the hoop attaching on the left, so whatever you are embroidering is laying on top of the arm, so even if you can get the item hooped, you have to sit there and make sure it doesn't interfere with the arm movement.