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Or the different sizes and shapes cut the steel much more different than diamond, producing irregular scratch patterns that scatter light resulting in a much more hazy finish

I would like you to try something for me, if you still have your "suspension" from the video above.
Let the diamond particles sink for a while (couple of houes? Two days? I dunno).

Take a light...

this would probably work. I don´t know for sure, though. I would try it without ultrasonic and see what happens.
One of the problems I heard of was, the powder itself sticks together and forms (sort...

Expect to face some difficulties trying to disperese the powder evenly.
Part of the magic is making sure the 0.5 µm particles do not coagulate in your mixture and form 5.000 µm grits ;)

The...