The technique is common but usually done with another type of media besides sand. I do a fine blasted finish on most of my standard knives and I use fine glass bead mixed with a fine abrasive media. Straight sand will usually give a very coarse finish and is probably best as a surface prep for coating or Parkerizing, etc.
Blasted finishes allow rust to form very quickly on carbon steels, this tendency is even worse if the blade is not sanded to a relatively fine grit beforehand, and is also dependent on the coarseness of the blasting media.
One exception to the above is blasting the tang before epoxying the scales on, this will give better bond strength over a smooth finished tang and basically the coarser the finish the better for this one purpose.