Great design on prototype #1 leaving a blunt point. You don't have to worry about stabbing yourself or your horse. Having been in some wrecks myself, that knife would be handy to have.
I have a batch of cpm 154 now with the same problem. The 5/32" seems to be fine, but the 1/8" has the texture your talking about. I've spent a lot of time on the surface grinder and it's still there.
I'll tell you this guys, Paul's video on sheath making is the best$40.00 I've spent in a long time. I have patterns for all my knife designs but, his pattern making method made me re-think mine.