Yea, I would just eliminate the flats by grinding up to the spine at the plunges, and then shorted the ricasso about half its current length. I would also narrow it a bit at the ricasso by about 3/16". In this case, getting rid of the flats by taking the bevels full height from plunge forward, and then grinding away the flats just behind the plunge, will mean that you will have to create a slight "V" shaped slot in the front of your bolster/handle material since the ricasso will also have a slight bevel in it. While it's not very common in western blades, it's often used in Japanese and European swords and other knives like the puukko.
Just drill the first hole at the spine side of the bolster ("ferrule") with a bit slightly smaller in diameter than the thickness of the spine, and the drill a hole at the bottom of the slot using a bit slightly smaller in diameter than the thickness of the bottom of the ricasso. You could then use the same bit as you did for the bottom to drill out the material between the two holes and then file the slow to shape with needle file. It's take some work to get clean, but I think it's a good idea to always try your best on the your current knife rather than to save the effort for the next one, at least while learning and developing your skills... unless it been completely trashed and ruined for whatever reason, then it's fine to move on to the next
You can always use a thinner (spacer-sized) material for the bolster on this one to save on all the extra fit up, unless you are able to drill or mill out a decent sized cavity on the back three quarters of the bolster material to avoid needing to file the entire thickness to match the ricasso, which isn't that hard depending on the material up front, especially if it's wood.
With regard to hand sanding, do you have any structured abrasive belts to use for higher grits (Norax, Trizact etc.)? You can easily get up to at least ~600 grit with those. I would probably skip the EDM stones on this one, unless you decide to keep the flats on the blade, then those would be able to help clean up the transition lines (shinogi). Using paper will produce just enough give to help blend in and flatness inconsistencies in the bevels if ya go full flat. Also, just curious, what size are the stones you have, and do ya know the specific type/material they are?
ETA: You would be able to blend in the flats while hand sanding, but the grind at the ricasso is still a bit low and would take a decent amount of sanding/stoning. I personally think it would be easier to just take it full flat as described above and go a little bit higher in grits if you plan on grinding off the flat ricasso area. This is all just my humble opinion of course.
~Paul
My Youtube Channel
... (Some older vids of some of the older knives I made)