Hi David,
No, you're not missing anything, I made it purely as an exercise to check if my universal head spindle was indeed in correct alignment.
Your method will work equally aswell, the method for setting the tramm up is very simple, and it doesn't rely on anything being in total alignment with anything else.
All that is needed to do each time it is used, is to use any suitable single height block, bring up the table or the spindle down to a set height and zero it, then swing each of the dials round to the setting block and zero each one to that height.
Remove the block, then align the tramm to either axis, and bring the table into contact with the dials, if both read zero upon contact with the table in either or both directions, it's spot on.
If there is a difference, then adjust the spindle alignment to suit your preference, like I said in my post, I like a slight amount of clearance on the back cut/sweep, especially whilst skimming Alloy heads(because of pickup), cast iron don't seem to have that problem.
As can be seen on mine there is 3 thou over 7", I'm not clever enough to work out the actual mis-alignment amount of the head....
It would allow me though, to perfectly align it for some serious boring on the miller, if it can't be done on the lathe.
Whilst writing this Awemawson provided the answer, thanks for that Andrew....
Chris