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All sandpaper will eat into the etch, however the higher the grit the longer that takes. 2K grit would take a long time to make any difference in a deep etch. You can also get micro polishing pads...

An etch like the one in the OP will be fine with steel wool. The ones with frosting or goldfish are the ones that steel wool will eat up pretty quick. One of the things that happens with steel wool...

That looks like a good candidate for steel wool and WD-40. Finish it with mothers polish and all should be well.