I think the vanishing thread length was specified to accomodate the typical results of threading with dies. On a lathe, you can usually withdraw the tool in quite a bit shorter distance. I don't have my Machinist's handbook here with me, but you really need to allow enough for the handtight engagement plus enough for a couple of turns with a wrench. After that comes the tool retract zone.
First you get good, then you get fast. Then grouchiness sets in.
(Note: The opinions expressed in this post are my own and are not necessarily those of CNCzone and its management)