How hard would it be to grind a whole knife, start to finish, with a dremel

The Dremel won't take the place of some other tools, but if the question is just, "can I make a knife with one and how hard would it be?", the answer is definitely "yes and easy". If he hasn't specified what kind of knife, that makes it even easier.

I think far to often knifemakers get too hung up on what they can't do with a tool, rather than what they can.

If it's variable speed, that will help.

Just get a piece of real thin pre-heat treated stock, like a power hack saw blade maybe even a ruler, for a small knife and start with that.
 
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