Induction motors can and are often used as generators, but as said before, they may something extra to start the magnetic flux in the beginning. Can be some external voltage, or a permanent magnet embedded in the motor.
Induction motors do have somewhere between 2 and 5% slip, and that is why these motors are often rated for 2800rpm on 50Hz, while a synchronous motor would run at 3000rpm on 50Hz.
VFD's are indeed cheap nowaday's, cheaper than the motor they connect to.
VFD's can often generate a 3-phase output up to 400Hz, but if you run a 50Hz motor above 50Hz, the maimum available torque diminishes. At low RPM you need a fan for forced cooling of the motor.
VFD's are cheap, but relays are still cheaper.
I share a VFD between a metal lathe and mill, since I am unable to operate them at the same time. Especially for the Mill it is wonderfull. It has a 12 speed V-belt setup, but I only have to change V-belts between low and high speed.
I've also programmed the VFD in such a way that the motor has a lot of slip at low RPM.
It is a 1.5kW (2hp) motor, but I can tap M5 threads in blind holes with the motor, and have the motor stop at the bottom because of the torque limit.
Just start with 0 rpm, slowly increment rpm untill it starts tapping, any change in needed torque tranlates to a rpm change.