I'm struggling with this same issue. I've been going back & forth since January between one of those printer-like cutting machines (Klic-N-Kut or Brother ScanNcut) that is great for applique, but not so good for piecing vs an Accuquilt that is awesome for piecing (albeit pricey) but more limited as far as applique. I currently use an Olfa ergonomic rotary cutter for cutting pieces & Gingher 5" knife edge scissors (which I send out for sharpening every 6-8 months) for cutting applique for needle turn.
For me, it's come down to that I just can't really get precision piecing with the rotary cutter, and needle turn doesn't really require such precision. So, for me, the Accuquilt is the better option. I'm looking to purchase a gently used model. Guild members & sometimes even sewing machine repair shops can be good places to look for barely-used cutting systems. I would love to have a KNK, too, but like you my space & funds are limited. If you do want a machine that's more suited for applique, I would encourage you to consider the KNK because you don't have to spend so much money buying applique designs since there are a lot of free ones available or you can scan your own in.
Good luck with your decision! Let us know what you end up with & how you like it.
