Hi Jim
If only sharpening is the aim, the wear of your diamond grinding wheels would not be that dramatic. If the cutting faces are not serious damaged or even broken away the abrasion of lets say 0.001in would do the job quite well. Really deep grinding would make things more complicated anyway. Removing a lot of material on the frontal clearance face minimizes the chip room in the dead centre region for instance. If you have to grind that deep you have to reconstruct the whole geometry of the front end profile, otherwise you will loose the rake face (and the chip room in the dead centre) more and more.
Grinding with fixtures on a moving table is a sliding process, so you dont push the tool with much force at the ever same position onto the wheel surface as you would do it while hand grinding your lathe tools with a normal bench grinder combined with a fixed tool support. And you only make small amounts of infeed with every pass, normally no more than 0.0001in at once. If you operate with care you will not groove the diamond wheels and dressing is not that necessary than you know it with corundum wheels.
Okay, to achieve commercial output quantities flood cooling would be a nice accessory, but you dont really need this for your home business. I dont have flood cooling and I use resin bonded and metal bonded diamond wheels as well on my tool and cutter grinder. And I couldnt notice serious temperature problems on the tools as well as on the grinding wheels.
Forget the second hand wheels and by some new one, and the grinding problems should be solved.
Achim