Gary,
I've done a number of restorations, was heavy into the vintage thing about 10 years ago. I rode Penton/KTM as a kid and found a few of the oldies and restored them. Did a DKW for an enthusiast, and several tanks for others. A lot of guys would powder coated frames, and frankly us guys that did a lot of the oldies would never consider it for frames.
You're on the right track but don't clear-coat, just use a cross-linked acrylic enamel. It's similar in chemical and chip resistance to epoxy or powder coat. Its best feature though, as you mention, is that it can be easily sanded down and recoated or touched up. Powder coat, once on there, you're stuck with it. It's virtually impossible to remove, it really can't be sandblasted off, and it chips and it's thick so they really show.
I used to have a local blast shop that would do a frame for like $60. Came back bright metal, all ready to go. My favorite paints since the 70's is Dupont, but PPG is good too. Just never learned the PPG componentry. Yes, self-etching primer is a must, then a primer-sealer - we always used Velvaseal, then your top coat. My all-time favorite was Centari, but you can't buy it in CA anymore. I still go over to Phoenix and pick it up. Mar-Hyde makes a wet-look hardener that's a ton cheaper than the dupont equivalent and it works great. Cross-links the paint molecules and makes it shine, makes it chemical resistant like for spilled gas on a tank. You can even do a low-gloss for a frame if that's what makes it look original.
Another plus is you can do your own painting, doing parts in groups or whatever. You can setup a make-shift paint booth in a garage with a blue plastic tarp and a box fan.
Centari, as with most acrylic enamels, can be wet-sanded and polished the next day. I've done tanks and other high-finish bike parts as well as cars with it, and you can create a mirror smooth finish that's durable and chemical resistant.
Powder coating works really well for hubs and engine cases, being most popular for the former.
Here's a pic of my Kawasaki Versys that was Kawi-green from the factory. It's was a bit disconcerting to be sanding down brand new parts on a new bike with less than 200 miles on it! I copied the 2010 paint scheme with a matt-finish tank and high-gloss farings, fender, and side panels.