The .22 Hornet could be considered a pistol round, due to it's size, and would work without lube in a TC die, but would work much better with a small amount of lube. I've got a .308 TC die, and it requires lubing the cases, as do my TC .30 Carbine die and TC 357 Sig die. I've started lubing all my .45 acp cases as well, because they go through the die with so much less effort when I'm doing several thousand at a sitting. It only takes about 20 minutes to tumble off the lube in untreated corn cob.
There are several small companies who make TC dies in common rifle calibers, but they are very expensive. The average reloader won't have the need for them.
As to the dealer saying you don't need lube on a .223 case in a TC die, he is incorrect. It will have to be lubed, unless it's being sized in a hydraulic press or an arbor press.
Hope this helps.
Fred