Over the years, I've found that I wasn't a huge fan of cloth backs. I did find some from Tykeables cloth backs that I liked, but it's the same issue: they sag at some point. I still have to wear compression shorts over them if I plan on trying to use them fully.
The 1 million was just for having a small scale machine. That alone wouldn't be enough to start making your own diapers. For all of the materials, facility, workers, etc, you'd need the full 10 million. Probably lots more than that too.