Well I've been looking around some more and an alternative to a microscope appears to be "document cameras". They look to have much greater working distance which is a plus and some appear to offer magnifications of about 1X to 12X optically and of course digital zoom beyond that. From a working distance and magnification standpoint these seem better. BUT, and it's a big but, the big problem with them is LATENCY. If the frame rate is low and/or the latency is slow then working with it could be a PITA.
The digital microscopes, particularly the USB kind that are kind of tubular and in the 40mm diameter and 125mm length ballpark might be useful if you can focus at the longer working distance AND the latency is low enough, but, getting info on working distance and latency is hard to come by.
Brian