Most mill-turns can run slow enough to get the job done. It's definitely not the fast way to do things, as an eccentric lathe would be the large quantity manufacturing solution. It's not so much about holding OD tolerance, as it is about holding TIR.
Tool post grinding on a lathe is always fun to do and can be done with fairly high accuracy if the operator is skilled enough.
There are not all that many piston manufacturers out there these days. Most of the smaller companies are highly specialized or are in the process of going out of business. For special one-off stuff, Wiseco, Mahle, JE, and CP all have good proto-type departments. The owner of CP and I are pretty good friends, so I can get stuff done there easier than me doing it myself, but I don't think CP will touch a two stroke piston project from the general public. :geek: