Again, the rpms of the Dremel scream caution when using it to sand. Try the scotch-brite type abrasive wheels instead. They come in 4 grits and are more forgiving than a sanding drum.
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I get it it is fast and one must be carful. but this is what I am thinking. Yes it is a drill press and is much slower but the idea is the same with a bit more caution.https://youtu.be/q-KEHGgpSmg?t=11
I would assume it could be used for many different things shaping scales also comes to mind.
If you use the dremel make sure you have good eye protection. In the blink of an eye (pun intended) you can have shards of metal flying.
I think that it would be fine for scales that you can rest flat on the platform/bench. I think it will be hard to use for the blade that will be held freely in your hands. If you watch videos of people polishing blades with a bench grinder, I think you will see that the dremmel would get in the way for about 2/3 of the blade. Just because the blade is something like 5 inches long and the drill bit is something like 2 inches long.
Dremmels can ne used. I just dont recommend it. Way to damn dangerous when working on a blade IMO.