Hi Nelson,
I like the belt sander much better than a bench grinder. As long as you have a non-flexing platen, preferably a very flat one overlaid with a ceramic glass liner (Pyroceram, like the knife grinders use), there is no rounding of the edge I've been able to detect. I admit that I haven't looked at it with an electron microscope to ascertain that but I can't see any rounding with a 20X scope - and I was looking hard for it. I really don't agree with the rounded edge argument unless the user used a machine with a bad or moving platen or was in the slack belt area.
I use AlOx belts, usually 24 grit to shape and 60-80 grit to remove coarse marks, then hone on a diamond stone. I find that stick wax makes a major difference in how cool and fast the belt cuts and in how long they last. Typically, a 24 grit belt will hog off steel without heating the bit very much. A typical 3/8 HSS bit takes less than 5 minutes of grinding time to make so its also pretty fast.
I find a good grinding table that can be set to precise angles quickly and easily is far more useful than jigs. Not saying you shouldn't use a jig; just that I don't find them necessary for myself.
I should add that those little 1" belt sanders don't usually have a solid platen mount; the platen is usually held on one end only. I suggest avoiding those. At minimum, I think your belt sander should have at least 1/2HP or more or you'll bog down when rough shaping.
Mikey