Well, it depends on the finish. Rubbing in one direction only, like petting a cat, has no validity on any "finish" I'm aware of. If you can rub it, you can rub it both ways. Now you might mean rubbing (in this case sanding) with the grain. Yes, always do that.
To answer your question directly: yes, you can get a decent finish. In fact, it's the best way (in my opinion) to "hand-rub" a piece of wood.
If you're using, say Danish oil, and rubbing it in with 220 wet/dry, I would let those coats dry and then do another with at least 280. When dry, Danish oil (in this example) will leave a satin sheen finish. You can then use a green pad (I use black - there are lots of grades for finishing, similar to steel wool) to take the sheen off. In fact, you can use the finishing pad to apply your choice of wax, and then buff that off with a brush and cloth. This will take some of the sheen off, wax your item at the same time, and leave you with a nice luster.
Dont try "hand-rubbing" finishes such as varnish, shellac, polyurethane, etc. THe best finishes for rubbing are oil-based like tung oil, boiled linseed oil, Danish oils, etc.