Sharpening with sandpaper is a perfectly good method, just have to be aware of the pros and cons. I make a block that is intended to be used with sandpaper, lapping film, and plain paper, and just posted a video showing how it works and best practices:
http://www.bladeforums.com/forums/showthread.php/1242011-New-Washboard-video
A great deal of the content is applicable to sandpaper sharpening with or without the Washboard, so is (if I do say so myself) very good resource just for the references to sandpaper usage even if you have no interest in the sharpening base itself (which is a pretty effective widget in its own right, again - if I do say so myself!).
Key issues are to use as little pressure as possible, the sandpaper has flex/give and can round an edge just as a strop might, even if used over steel plate or glass. Also it can clog very rapidly and suffer greatly reduced lifespan. So - light applied force, and clean it often - will work very well. Is important to use a good progression and patience, leaning on the paper to get better grinding speed will kill it and change the geometry of the edge. A good selection of papers is imperative.
In general it is versatile, robust, and very convenient. Do not forget that lapping films can be had in a variety of abrasives and they work pretty well too. They all need to be used with care.