Thanks Daryl,
Some quotes from the Rustlick MSDS
Respiratory protection = Not normally required. Control vapor or mist concentrations below exposure limits through use of general or local exhaust ventilation.
On another note, atf is often cooled in an automobile using a small radiator so I would believe atf must have a decent heat transfer capability. Also, it does not have to clean the transmission because contrary to engine oil there is nothing to foul it. If used as a coolant on a grinder, I would not expect it to hold contaminants in suspension like engine oil would.
ATF will last a long time if it is not overheated. I would say that it is primarily formulated for lubricity and stable viscosity over a wide range of temperatures. I believe that the viscosity of atf is in the SAE 7 to 8 range.
However as just mentioned in the post above, there is nothing like something designed for that specific type of grinder.