I think the router base would need a partial spacer to get it above the weld that has not been cut yet.
This is correct. My router table is set up with a spacer of phenolic so that the weld isn't riding on the table. And yes, a router table will be heads and tails above a handheld router for this application.
I use a regular woodworking roundover bit with a bearing, but also set a fence up, about 1/16" back from the plane of cut. This allows me to hold the part solidly against the fence at the beginning of the cut (to keep it from kicking at the corner) but then the bearing pushes the part away from the fence, and guides the part.
I match my bit radius to the outside bend radius of the brake formed parts. This is fine on parts bent to a tight inside radius, or with a knife edge punch - it is critical for the weld to keyhole, and leave a fully fused back bead, to carry the material thickness fully around the seam after cutting the corner off. If it isn't critical that your brake formed corners match your welded corners, you can certainly scale back to a smaller radius.
You can get carbide wood router bits with just about any fractional radius you can imagine, from an tiny 1/16" to over an inch. If you are going the router route (no pun intended), you may want to think about a different welding method (perhaps leaving a bit of an overhang and doing a weld without filler material, then routing over that edge. If you are going to finish off the edge anyway, you want to spend the least amount of time welding as possible.
Be careful with this, you'll end up getting fusion primarily on the portion you are cutting off.
Short of a router, your 4.5" grinder is the ticket. Start with a 50-60 grit (FLAT sanding disk - flap disks are useless for fairing outside corners, they are designed to flex and contour - you want something with a rigid backing and flat plane of cut to cleanly blend those corners), move to 120, then hit it with a scotchbrite. Wax is a necessity on the sanding disks (not on the scotchbrite). I use the Lenox Lube Tube.
Tedious, dusty, miserable work that will leave you with hand fatigue if making these in large quantities.
The router table has become a lifesaver for me. I have parts that used to take roughly 4 minutes each with a 50 grit, and 5 minutes each for the second sanding (brown scotchbrite). I now am at a bit under 2 minutes each at the router, at 1 minute each with the 50 grit, and 2 minutes each with the scotchbrite. My hand used to feel like rubber after an hour - I'm now able to make many more parts before fatigue sets in