The round point 7 inch at either $11.95 or the $14.95 are almost identical to the Hyde #2.......BUT for several months now I've been using the Dave Ferry (Horsewright) custom skiving knife made of AEBL steel and it will be the one I use (or one just like it) from now one.
Regarding gluing the welts, I am neither for or against roughing up the grain side. It sure doesn't hurt, but since the welt is going to be stitched in permanently within just a few minutes and then the edges fished after that it really isn't necessary because it is NOT going to come loose.
I do not sharpen the splitter blade, but I do, from time to time "tune it up" on a rotary buffer with compound (stropping effect) I did change out the blade recently. Cobra has an exchange blade system for a fee. Send them a dull one plus the fee and they send you either a brand new or a newly sharpened blade in exchange. I bought an extra blade when I first got the machine, because I did not want to be down during blade sharpening or exchange. It's a big blade and I do not have the equipment to do an absolutely flat sharpening, which it does require if it is going to perform adequately.
I do not bevel the inside of an inlay window because as you have seen I split the grain side off at about 2/3 OZ , saving the split, install the inlay and cement the whole thing back to original thickness. That window step is very small and flat and square and does not need to be edged.. The final finish (TanKote and Wyosheen) darkens the raw edge to match up pretty well with the rest of the sheath. I do think I remember cases where it was beveled and dyed, (not me) but in those cases it was not split down thin to begin with.