That looks like the sort of dressing tool that requires a precision traversing holder to shape a fine grinding wheel in a surface grinder or CNC machine. A posher version of the diamond dressing tool on the Tormek. Not a hand-held device at all IMHO.
theo ne you ask about would be a very poor choice. Aside from requiring times and a shop-made jig to hold it in precise position on the rest, it would engender lots of frustration. Instead you want something like this - http://www.planemaker.com/articles/grinding2.htm - lalso inexpensive.