I have an MGW wrench and like it quite a bit.
I believe the knob is there to take up any slack that exists between the frame/inserts and the wrench body. My K frame inserts were slightly oversized and after fitting them to the wrench they do not need the knob. My N frame inserts are slightly undersized and the knob is needed to keep the inserts from twisting (very slightly) in the wrench body.
There is also a plate that bolts across the bottom to close the square. When that is in place, the inserts, frame, and wrench are all one solid unit.
There are people who do exactly as you described, and I know one gunsmith who locks his frame wrench into a vise, wraps the barrel in tape, and then uses a large crescent wrench around the barrel and forward locking lug.
I've found that I prefer to lock the barrel into a vise and use the handle on the frame wrench. I think it gives me better control and has less possibility of anything slipping and possibly marring the finish.
If you're thinking about working on "nice" things, I suggest buying a rusty, nasty, junk gun to practice on first....that way your first experience isn't with the nice one and if something goes wrong it's no big deal. Try it both ways and see what you prefer.