Just as an update. I sent the wife out for a 60 grit flap wheel for my dremel and she returned with a 60 grit drum sander for the dremel. Those little brown round sanders. Turns out they work on metal.

I pulled a 7/8 wedge that I am working on and 7500 rpm, low and slow. Holding the dremel 90 degrees to the razor. Back and forth. Admittedly when I was done the discoloration was gone and pits nearly removed. The finish looked like something from a modern art exhibit. I almost wet myself.

I set the stuff down and took out a towel, 80 grit paper, and some castor oil. I coated the blade and went left to right on the blade. Why, well by holding the dremel 90 degrees to the razor the scratches run left to right on the blade. Went at the blade very fast left to right using a lot of pressure. Repeated the hand sanding oil method up to 600 grit. Low and behold I have a matte finish with some residual scaring from holding the 60 grit dremel at the wrong angle and having the drum dig into the blade. I believe that I can remove that scarring with a 60 grit flapper and then repeat the process. Total time to get to finish the 600 grit, 1 hour.

I cannot reinforce this enough so I will put it into bold big letters. When working with a dremel go low and slow with no pressure.

When I get the whole thing finished I think I'll put up a step by step, maybe I can get a wiki sticki out of the process.