What does grading involve? I think by grading you mean applying a look to the scene-referred image/footage? Perhaps using a LUT?
And I think you are saying grading is done?/is best done? on log-encoded data rather than linearized data?
What does “display-ready transfers” mean? I think you are talking about taking the already-graded image/footage and applying a LUT to map the graded output to make it suitable for display on a preselected display device?