It is time consuming, and not a natural way to finish for most people. The procedure to get a bright polish is also long and arduous. The water stones create the basic shape and surface ( shitagi-togi), then the polishing with fine compounds and powders takes over to make a bright finish ( shiaji-togi). When doing yaki-ire to create a hamon on Japanese blades, using stones and hand polishing is almost a must for the best finish. On regular blades it is more of a purist thing.
Sandpaper with a backing block is probably much easier, and time wise faster ( but still not fast). You can take a 4" blade from rough grind to final sanding at 8000 grit in a couple hours. With stones it can take two to three times as long.
One other difference is that cuts are far more common with water stones and togi than with grinders and sandpaper.