I only sanded by hand. The only power tool I ever used for prep was a buffing wheel. I do use a little white compound with the wheel. Using a Dremel to sand would probably get out of control fast. I did leave my Crux quite smooth, and like how it looks and feels. My Falcon is still pretty rough in texture, but not the horrible feel as it comes out of the box.
The only etchant I've ever used is Whink. And the only mistakes early on that I can think of, is not having Whink on hand while learning. I actually have made many mistakes, but all part of the learning curve. Back to Whink, it will strip off previous ano in seconds. And if left in, will just keep eating into the titanium. So I use it to etch, but don't let it get out of hand. And if you don't like the ano look you came up with, 7 seconds back in Whink and it's gone.
I have anodized pretty much every surface finish I've come up against. From heavily etched to full polish. An etched finish will give a more solid color. While a polished surface will be more susceptible to short term color changes from body oils from hands and such. Take my Crux for example. When it was fresh out of the bath, I took some pics that show it with very bright distinct colors. Then handle it for a few minutes, and it is suddenly very pastel looking. Get a clean cloth and give the Ti a nice alcohol wipedown, and it will return to the bright colors. It's kind of crazy. A polished surface will also color shift more in different lighting environments. I find it fun, but if you had a specific color in mind, only to have it shift randomly, it may drive you crazy. I'll try to find some pics of my mighty morphing Crux.
Early pics before handing...
Then a few days later...
And here is my Gent with a blinding purple...
Then a few weeks of pocket time... Actually just taken today...
Now after an alcohol wipedown...
It's just the way it is.