The notion of a Dremel being 'too fast' is mis-leading. The small wheel size effectively reduces the actual speed, in terms of how many linear inches of abrasive go past per second. A Dremel at 10,000 rpm is actually slower than many 'standard' bench-style buffers with 6" or 8" wheels, running at 1725 rpm. Again, due to the much smaller wheel size on the Dremel (1"). A Dremel does require a steady hand, and a flex-shaft attachment makes control easier. And, I'm not sure if a suitable attachment is available to put a satin finish on. I've used mine, with a cotton wheel, to polish a blade.
Having said that, good quality wet/dry sandpaper (3M or Norton) lasts a good long while, especially at the medium & finer grits. The coarser stuff, like 220/320, will lose some of the aggressiveness that it needs for taking a lot of metal off quickly. Grits from 400 - 800 or so will produce varying degrees of a satin finish, all of them quite attractive. I've used a rubber drafting-type eraser (Magic Rub) as a sanding block, around which the paper can be wrapped. The rubber eraser is flexible enough to mold itself to the contours of the blade, and it also evenly distributes pressure, which minimizes flat-spotting. When the paper gets loaded up with metal swarf, it can easily be cleaned off (wiping, brushing, rinsing) to restore much of it's aggressiveness. Another possibility, that many have used & recommended, are the ScotchBrite type pad abrasives. The most common is the green type, which isn't very aggressive, but can produce a nice satin finish.
