its a frameless motor in the spindle. its a stack thats only 1" long (2.5" total with windings and halls) so it fits nicely inside. drawbar release is also very compact - basically a motorcycle brake cyclinder. through spindle coolant might be nice to add as well, but im not sure yet how complicated that becomes with high speed rotary fluid unions and whatnot.
for the rotary axes, im not actually sure. theres room in the head for a worm gear, but i kinda want direct drive. the guys who do the spindle motor can do a pancake torque motor as well with a large bore. price on these motors seem to be a funtion of the amount of copper used, so they wont be super expensive compared to getting a precision no backlash gear setup. renishaw has a nice magnetic ring encoder as well which isnt very expensive.
id use THK crossed roller rings in both axes. 1 ring plus one stabilising radial tail bearing. your in the $4-5k range i think to make a rotary axis with water cooled frameless motor and crossed roller ring on this machine. again, not hobby priced, but this will definitely be the cheapest and most compact 5 axis box way machgine on the planet