My notion was for anything that requires cutting large pieces to eventually acquire a track saw.
If you have the coin, a track saw is an ideal tool for breaking down sheet goods. It's more accurate than just a circular saw, and the resulting cut will be a finished edge. Get a sheet of rigid insulation foam to lay the plywood on top of and then rip to your desired, final dimensions. The foam will ensure a clean edge on the underside (the zero-cut clearance of the track will ensure a clean edge on the top).
If ~$500 is too much to spend on a track saw, you can get close to the same results with a normal circular saw and a good straight-edge, though you will get lots of tear-out even if your blade is good. Kreg makes a jig for circular saws that a lot of people like, though I have not tried it myself, and costs ~$75. Apparently it will make any circular saw come close to a track saw.
I do have windows. However. During the winter opening them is not really going to be an option. So I intend to invest in a solid dust collection system instead. That being said, it's my understanding that non-powered tools generate much less dust. Is that true?
Depends on the task. Hand tools make large shavings which are easy to sweep up with a broom. Sanding in general will make fine particles, but power sanders can be hooked up to a dust collection system; these can be costly but reduces the amount of dust to near-zero.
honestly I haven't bothered with a dust collection system yet, not because I don't want one but because I can do without and there's other tools I'd rather spend my money on (or wood). Often when I have to sand I take my piece outside and use an orbital sander from 80grit to 120/150 grit, then finish sanding by hand to 220. My "dust collection" system (as it is) is simply a shop-vac with a decent HEPA filter that I can connect to whatever tool I'm using (table saw, orbital sander). It's loud, but I wear ear protection (WorkTunes!) so I don't really mind. That takes care of ~95% of the sawdust. The rest I vacuum up afterwards and use a broom for.
You do NOT need a lot of space to be a woodworker. a 10x11 x 7.5' space is plenty big for most home projects. I've put a small "job-site" powersaw into an apartment room with less space and it worked (though it was loud and required some coordination with my upstairs neighbors).
[urlhttps://woodworkingformeremortals.com/]Steve Ramsey [/url]gives a good breakdown of the tools he'd recommend for a budding woodworker, which will set you back < $1,000 for everything.
Or you could spend $425 for a single
Lie-Neilsen hand plane or a set of
hand chisels. Which I would do in a heartbeat if I money was less of an obstacle for us.
Final advice: Tools don't make one a woodworker, and you can do a LOT with a small space, a couple of inexpensive saws (power or hand) and a pocket-hole system (e.g. Kreg Jig). Oh, and find a local independent hardwood dealer. They'll often joint one edge for you and it will beat anything you find in your big-box stores on both quality and price.