Hi-
Thanks for the responses. The flooring we are looking at has a substantial wear layer, even still, I am sure it would chip up over time, which is expected and fine. I just don't want big chunks of wood splintering off. I guess as long as I don't get an overwhelming 'no' response I think we will go this route.

Is there a special tool to create the miter (other than a table saw)?

After install, what is the best way to achieve the eased edge, should that just be done with sand paper or is there a special tool for that as well?

A router in a router table would work well. There are router bits that are designed to make a 45 degree cut. You could also ease the edge with a router. I'm assuming that you have checked your local building code for stairs as usually an overhang is indicated for stairs with a tread depth of less than 11 inches.

Thanks,
Meg