With regard to a suitable tile in your substrate, that tile needn't be perfectly flat or smooth. It just needs to be extremely stiff and not change shape due to humidity and/or temperature. No timber, however well seasoned, will meet this requirement. It is even a problem with the balsa and one of the reasons that extra-thick balsa is not specified.
Lapping flat and repasting before each use may work, however you will end up going through a lot of diamond paste. Remember that to keep a consistently perfect edge, you will be balsa stropping an edge after each and every shave. Do you intend to lap and repaste with each shave?
Thanks for the additional advice @rbscebu, I have since ordered aluminum plates to use as substrate.
With regard to needing to use 0.1um paste, I am expressing my personal observations and those of others who have experienced the same or similar results. I cannot explain why this is so, only what I and others have learned from experience.
Shave comfort is not just about "sharpness". Once you start getting into sub-micron "honing" you are dealing closer to a molecular level rather than a granular level. Steel grain sizes are of the order of about 4um.
I realised my mistake and have ordered 0.1 um paste