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I run a Dremel clone with a “snake neck” attachment – it’s perfect for drilling with tiny drills; I use it for PCBs mainly, and drill as small as 0.3mm without problems (though my main drill bit is 0.8mm). It makes short work of plastic/resin (it’s main purpose is to drill copper-clad resin-bonded paper sheets) but it a million times more controllable than a Dremel in a vice or stand.
My entire set-up cost a fraction over £50 – thirty for the drill, fifteen for the long neck attachment and drill bits are about £7 for 50 (refurbed CNC drill bits).
I’ve made no end of different spindles for CNC machines from all kinds of different motors – this prototype doesn’t exactly fill me with confidence. It might be a nice little gimmick, usable even. But I doubt it can hold a candle to a Dremel with a snake neck attachment!