Well, I probably won't take on this project just yet but I can confirm that the Grizzly with a 36 grit ceramic belt moves through steel in a _fast_ kind of way.

I ground a 1.25" by .25" blade in about an hour. Much less time for mistakes than the bench grinder, and I can see slowing it down one day. I'll need more room to lean the arm back though, and that will have to wait till we move (for kids, dogs etc, not just my hobbies).