Was wondering if there is product on the market that
would have a 2" grinding weel, may be 6x12" grinding
area and .0002" or better downfeed control ? I need to
be able to grind 1/4 strips of blue steel (~50RC) down
from .007" to .003-002.5", with .0005" accuracy.

The actual grinding areas are really small - may be
..0040 wide and 3/8 long

I saw plans for home-grown one @ http://www.dm.net/~lughaid/vest.htm

Just might have to build something like this. I reckon there is
very little reqs for X-Y travel, outside of it not interfering
with downfeed's accuracy.

I have built a simple jig for Dremmel and it almost works, but
the spindle is very loose, plus the grind wheels have 0 accuracy
to them: not concentric, not accurate axially etc, trueing up won't
even help .