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Bench grinders are bad for making knives (sweeping statement I know, but very few exceptions) due to there not being a flat surface to grind on. Sure, you could use the side of the stone if you removed the guards that are often in place, but:
A) You don't want to wear the stone out that way, or it risks breaking and flinging lumps everywhere
B) The stone spins faster the farther it is from the axis.
I suppose that you could use a bench grinder, very carefully, to remove the majority of steel and then flatten it with files but if you're going to be buying a new grinder for knifemaking you may as well get one that'll make life easier.
For the record, bench grinders are bad because the curve of the wheel makes it difficult to get a grind that isn't hollow - and as a general rule, hollow grind radii are larger than your average bench grinder.
They are great at doing rough removal of stock when shaping the blade though, since they don't wear out as easy as belts for a grinder do. Also, they can be extremely coarse, which CAN result in less heat buildup if you're reshaping a HT'd knife.
That's about it from me - really, i think you'd be better off with a belt grinder, but a bench grinder belt/stone wheel combo would be excellent.
Pete