The short answer is "yes, you are".
You sort of answered your own question when you mentioned a proper cylindrical grinder because your setup is not rigid enough to apply some cutting pressure on the wheel to get it working properly.
I think you're right. I forgot I had a sample that got chromed in a place I could test my KD240 PCD insert and a little came off in a powdery form but the edge was quickly destroyed. Forces were quit high as well and I'd be worried about ruining my parts if they spun in the fixture etc.
Here's my setup (home shop alert), it lacks the rigidity of a real ID grinder but I'm getting good results, just painfully slow.
I dont see any indication of whether this is internal grinding,or external grinding.........I assumed internal from the quoted feed rates .(.0001" per hr)........if its external grinding,then all you need is a decent cylindrical grinder and a silicon carbide wheel ,,,,thats what I use on my Landis ,and can reduce a thick hardchrome plated deposit to the underlying steel in a few minutes,....in general ,the harder and more brittle a material the easier it is to grind to a nice finish and exact size.
I never tried a silicone carbide wheel, got any specs for what's used on chrome?