Andrew:
Thank you for your complete and most helpful reply.
Straight Hobbing is new to me, too. The hob is prepared without a helix ! Each land is perpendicular to the axis of the hob.
The term "straight hob", unfortunately. does not search well, but some books on gear hobbing make reference to the process, and Ivan Law makes a curt reference to the process in WPS#17.
You should have at least 5 lands for the method to work (even 3 will work on a small diameter gear) to create an involute tooth form. You cannot, for example have but one land, for it would not generate an involute tooth form. On a large gear, you need 7 lands.
As you surmised, you must manually index the gear blank for each tooth and you must make shallow passes of the hob cutter into the gear blank. The concept is for the lands above and below the central land to gradually remove a bit of metal with each index pass. The central land is the middle land (#3 in a 5 land hob) and it must be cutting on the centerline of the gear blank.
Straight hobs are EASY to make. The lathe tools are easy to grind accurately and quickly, unlike buttons. The process automatically corrects for all but the most egregious errors. It is best to file a thin sheet metal template for guidance in grinding the angle of the lathe tool to the pressure angle (PA), as in my case a 30 deg PA requires a lathe tool to cut a 60 deg groove between each land. Land spacing equals the Circular Pitch (CP), but to cut the grooves forming the hob lands since they are parallel, you only need to use your lead screw micrometer dial or lacking a lead screw micrometer or even lacking a lead screw, a dial indicator poised against the side of the saddle will accurately measure the distance moved between the lands. A screw cutting lathe is net required to make a Straight Hob, even a wood lathe could do it. The diameter of the material used to make the hob is not important, but of course you must take the diameter into consideration when deciding where to form the teeth. The number of teeth is not important. Each tooth must be relieved or it will not cut. I am thinking that rake might be helpful if the mill used to hob the gear blank/pinion is not substantial. The entire process could be done on a lathe with a milling attachment.
I suspect this is very old technology and may pre-date the screw cutting lathe, maybe going back to early clock and watch makers who needed a way to make gears and pinions more quickly than hand filing.
Paul