Actually, Doc, for the things that require a surface grinder (like 123 blocks) you just buy the thing. Heat treating in a hobby shop is really useful when making tools that are made for a specific purpose - cutters, drills, etc - and it is really good to learn how to do it. Everything warps with heat so if the part you're making rotates then you will have a small bit of warpage but things like custom lathe cutters that are static work just fine. I've been making small hardened parts for my personal use for a very long time and don't own a surface grinder; haven't had my tools not work yet. I'm one of those torch and toaster oven backyard guys and don't fit in with the big boys but that's okay, my tools still work.
Since I cant start work on the shop yet (getting closer, but they haven't finished cutting trees yet), I've been keeping myself busy by reading about different topics and watching different videos. There's a great video on Oxtools about 123 blocks... got me wondering about what it would take to make them.
Clickspring and clickspring clips have a lot of videos on hand made custom tools and heat treating. Very cool stuff.