The right tool for the job is the one that provides the required end result.
As already said, if a tool is needed that is not one of the standards available, you have to make your own, so HSS or CS become essential.
They are invaluable at 8:00 pm on a Saturday night when the last carbide insert chips!, on a VERY urgent job.
Don't know of a 1/8" dia Carbide rod, but a short piece of 1/8" diameter HSS cut a 4 mm pitch semi circular thread when I needed one.
Older machines, being designed before the advent of Carbide, are not really suited to get the best out of carbide (Lack of speed or rigidity, or both )
My favourite for much work is a HSS tool bit in a Tangential Turning Tool. (Have 1/8, 1/4 and 5/16 versions ).
EASY to sharpen using a simple jig.
Carbide inserts get used for roughing, boring or radius work, Especially if the steel is hardened. Lovely to see the blue /brown, or red hot chips coming off!
Horses for courses
Howard