I don't know which direction is better, threads up or down, but for now lets say threads down. So you would drill a hole in the leg the size of the unthreaded part. Then you cut off the feet. Install the unthreaded portion in the leg, probably using glue to hold it in place. Then you drill out the feet with a hole big enough that the threaded portion can easily slide in and out. Now thread on the wheel. The wheel, on the threads, sits on the feet and elevates the bridge when you turn the wheels. Essentially like an archtop guitar bridge.
I am somewhat suspicious of the stability and reliability of this kind of adjuster, on a gut level. Especially the wheel being ebony... No experience, though, aside from having been shown a few.
EDIT: Sorry, yes this is exactly what you're talking about in your third paragraph.... Anyway, I've seen these kind of adjusters before, and that seems to be how it's done.