Actually your math is right but logic is off. The larger circumference lowers the RPM in your first equation. A simple way to think of it is pulling 6" on a 2" or 3" circumference, the 2" would spin 3 times, while the 3" would only spin 2 times.
Why don't you angle the pedal off to the side to keep the cord away? I have had thoughts of making a small one to take to Ren Faires one of these days to sell turnings and bows, A bow bench would be easier, but the man powered lathes bring more people in.
EDIT - I think cutting speed is overrated sometimes. I rounded up a split blank the other day that was too out of balance for my light lathe and stand (powered midi) by rocking it back and forth by hand and using a big carving gouge. It cut very clean.