It might be somewhat helpful in the finishing stages, perhaps in combination with hand buffing. Most of it depends on what the steel's finish is, before starting. If the steel is currently only a 'satin' finish, like many blades, the Dremel & compound by themselves likely won't work. Some sanding beforehand would be needed, in a tight sequence up to or past ~2000 grit (wet/dry sandpaper). The 'uneven' finish issues previously mentioned can be mitigated somewhat by regulating pressure (always, always keep it very light) and also by keeping the buffing wheel moving across the blade (don't linger in one spot too long). That point is also important in preventing overheating. Some hand buffing/polishing can help in evening out some of the uneven spots, if they are an issue. And when working near the edge of the blade, be all the more careful; keep the orientation of the spinning wheel such that it's always spinning AWAY from the blade edge. If it spins into the edge, it'll grab and likely throw the tool and/or the knife, if not careful.
The buffing wheel on a Dremel can also be useful in some tight spots on a blade, such as in the plunge grind area, where the blade transitions into the ricasso/tang. Sometimes it's difficult to work in those areas, if only polishing by hand.
