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I didn't grind hollow first. It would be tricky to grind in such a way that the step still comes out right. For a simple faux frameback you could so something like this. One issue I can see is that...

Indeed.
Rocking the blade on a smaller radius wheel also increases grinding speed, and prevents heat buildup.
And wat you desrbie about the faux frameback, that is how I ground my smiling Lancet...

It almost never is. The grinding radius is almost always bigger than the wheel radius, because it is impractical to do otherwise.