I think the Dremel gets a bad rap sometimes. I use a magnet holder when using my Dremel that holds the blade dead flat against so there is no chance of catching the edge. Secondly, I place a damp cloth between the blade and the magnet to help absorb any heat build-up. With these two precautions, I’ve never had any problem using my Dremel to restore razors.

For this particular razor, I’d try a little emery compound if available. That’s usually the first step I use when approaching a restoration project.