I remember seeing a similar grinder (I think it may have been a guy making razors) a couple years ago when I first started looking into this addiction. I always thought it was an interesting idea and it seems to creep its way into my head every now and again. This thread seems to be the most recent reminder and it always snowballs into something ridiculous for me somehow... See below where I go into way to much detail on your idea gadgetguy.
Since this is somewhat a jig in its own right, I'm starting to think it would be kind of cool to build a sled with a bracket to hold the blade 90 degrees in both planes. Then make a bottom guide with a threaded rod to feed it upwards similar to a mill/surface grinder, only with changeable dies that have the same curve as each of your blade designs. You could grind a LOT of blades VERY fast by just pushing and pulling blades through with one hand and threading it up with the other hand. Probably only makes sense in my head, but that's all that counts!
See, here I go getting crazy on it again.... As for the pinch point, anyone with a welder or riveter could fab up a simple guard to cover the top portion of the wheels and then, voila, no more pinch point. Lower half is the only useful part anyhow.
Justin