I've been a cabinetmaker and boatbuilder for 25 years. Most wood guys are not good grinders, and do a lot of sharpening by hand, often on waterstones. Another method is called scarry sharp, which is basically a non-motorised sanding approach.
Large catalogues like LeeValley.com sell meriad sharpening systems. Leonard Lee wrote a serious book on sharpneing published by tauton press. A library should be able to get it. Another big name in tools is Tom Lie-Nielsen, he has a new book out on sharpening which I haven't seen.
How people sharpen tends to depend on where they fit on the skills continueum, and what particular style of woodwork they are involved in.
Carving requires the sharpest possible edge. It also requires control surfaces to manouver the edge with.
Fire away with any specific questions.