Wow! I had no idea that this would be a controversial subject!
Here's a dull step bit before attempting to sharpen it:
And after using the very edge of a somewhat worn and rounded-over flapwheel on my 4 1/2" AG:
I was able to get some back-relief on the face of the bevel--at the expense of the size markings.
It cuts and throws big, beautiful curls:
And, as the picture clearly shows, the steps are indeed concentric and not spiral.
Unfortunately, it cuts to right there and no further. I may need to screw around with it some more--or send it off to pasture. "No, honey, we're sending him off to a nice farm for old drill bits."
Step bits are far from my most used tools. When I need one, I need it, but most of the time I don't. That's why I was so surprised at the cost of a new one, as I haven't bought one in this century. Sharpening was mostly a experiment.
I usually give my dull bits to a blacksmith I know who makes beautiful knives from them.
Eco: I know what a burden having too much of anything can be and I'm willing to sacrifice some of my shop space to help out. I'll pay shipping.