Interesting thread!
And I have a question too.
I have a hand forged/made screw plate, and tried to make a screw with it once, but with no luck. But, I used a slightly larger diameter piece of metal than the thread size in the screw plate, like you'd do when you cut threads. However you're saying you use a smaller diameter than the thread size to form the threads? I was thinking the plate would swedge the threads down to size, and you indicate that the plate will swedge the threads out to a larger size? In your example, a .157 blank out to a .174 screw.
John