Welcome Putttn,
I've never used a Shop Smith, but have a space issue like you do. Also, my "woodworking" right now is a lot of house remodeling projects. Whether you do "traditional" woodworking, you are remodeling your house, or you are working on-site at a customer location, the beauty of Festools is that you can set up your "shop" where it works best. When done, you can break down your "shop", and move it to a new work location or store your shop in a convenient, compact space.
My current shop is my bathroom. In a couple of months, it will be in my garage. After that it will be in a large crawl space building some large shelving or in the back yard rebuilding a cedar fence. Then, I'll replace all of the doors and moldings in my house. After that, who knows - maybe some new shelving and built-in furniture in my office. The beauty of Festools is that, instead of taking your work to your shop, you take your shop to your work.
Another thing is that your dynamic "shop" can be quickly custom-tuned to the work. You just look at your stack of Festools and pick "one from column A, one from column B, etc". As your wants, needs, and problems change, your "shop" dynamically changes to meet your wants, needs, and problems at that moment.
Below is a pic of my current "shop" (master bath) and below that is a promo pic of the new Kapex in another "shop". Location is different, many of the "shop" components are different (I have an MFT 1080 and the Kapex is on an MFT 800), and the job is massively different.
The "shop" in my bathroom pic is my "sheet rock hangin' shop". I just finished hanging most of the ceiling sheet rock. Cutting and hanging sheet rock is dusty. The vacuum attachment on the end of the CT22 hose took care of the dust. Not shown is my Rotozip with dust attachment that I connected to the CT22 to cut some openings. The C12 drill has the new Depth Stop Chuck that works great for installing sheetrock screws. My MFT with clamps is great for holding and cutting smaller sheets of sheetrock (that's sheetrock under the C12). But...
My "shop" this week is my electrical shop (no pic). No sheetrock in evidence. The MFT is clear except for the vent fan fixtures and the lighting fixtures, my C12 drill, and a bunch of screws and other oddments for installing the electrical stuff. This will take at least a couple of weekends.
In 2-3 weeks, I'll start building the tub deck and shower curb - some real wood working! (Well, it does involve wood.) Lots of 2X4's and 2X6's to cut. Some 3/4" ply for the deck top. I'll need a woodworking shop in my bathroom. The MFT will become my "table saw". I'll clear a space on the floor to cut the 3/4" ply. Why run up and down the stairs to a shop when I cut the components 5 feet away from where they will be installed!?!
Get the picture? Your "shop" grows and changes to meet your needs. As you grow and your needs change, you just buy more tool components and add them to the "shop" mix. Take a look at the Boom Arm in my "shop" pic. That's only about 10 days old. I got REALLY tired of tripping on cords and hoses. I.e., my needs changed. So I bought the Boom Arm from Uncle Bob and changed my "shop" once again.
Besides all of the other reasons mentioned previously, this is why I like Festool. Good luck with your choices,
Dan.