I own dial gauges and dti’s from a few different manufacturers , Tesa ,compac , Starrett , Mitutoyo , Measuremax and a pile of no name cheapies .
On My Mill i like my last word by Starrett as it is very small and i don't have to move the head too much to get it in where i want it .
On my Lathe i generally use a no name dial indicator unit ( plunger type )as I’m only using it as a comparitor to true up the workpiece but if i want to get something dead nuts on i go over to a dti once i get it close with a dial gauge – why use a dial gauge first ? It has more travel as all mine are 1 inch travel minimum .
The measuremax dti has a long stylus which is handy for indicating bores or journals where a short stylus may not reach. .
One benefit of a dial gauge over a dti is the size of the face which can make them a little easier to read and another is that they can be used to measure table or saddle travel when machining ( a poor mans dro ) because they have more travel than a dti .
As for having the plunger perfectly perpendicular to the workpiece when setting a part up in a 4 jaw near enough by eye is good enough as you are using it as a comparitor so any error is self canceling . If you were using it as a measuring device on a surface plate then yes it is important and a dti is easier to set up in that instance but you also need to be aware some manufacturers will state a specific angle that the stylus needs to be from the surface being measured if you are to use it as a true measuring device and not a comparitor .
I would use my cheap dial gauge units probably 95% of the time on the lathe and if it gets damaged who cares it cost $15 bucks and i have a few in the cupboard in case i need one ! I would steer away from really cheap dti’s though as you want at least a reasonable quality mechanism for reliability. , My measuremax is asian made but not too bad – but not even close to a brown and sharpe !
Be careful buying online as you may have issues with warranty if something does go wrong , If you must buy a Mitutoyo then i would suggest you get onto the Mitutoyo website and look for a certified seller in your country and please be aware there are clones of the Mitutoyo Equipment out there everywhere
It really depends on what you want it for ? If it is just for setting a part up in a 4 jaw then i would look at the dial gauge from ARC as SOD has mentioned and keep your cash for something else – maybe a decent mag stand ? IF you want to tram a mill vice in or indicate a bore on the mill or lathe then a dti is what you want but by buying reasonable quality you could get both for the price of the Mitutoyo .
Remember it is a hobby not a carreer!