I want to be able to control the curvature and number of lines + their angle as the inside shape depends upon lines falling at a certain angle.
I’m mainly talking about the hashed outer ellipse. I’m thinking maybe some kind of guilloche tool or something like that. Any ideas?

The vector tools in PhotoShop are just as good as Illustrator for type on a path.
I don't think so. I believe you have a lot more control in Illustrator, such as where on the path the type starts and whether to place it inside or outside the path. Does Photoshop have such options?