Hmm, the Dremel tool is pretty versatile for smaller, light duty tasks. Basically anything that needs a delicate touch. be it drilling, sawing, grinding, polishing...

But it doesn't have the power to tackle any larger projects. It's definitely no substitute for the power drill/drill press, angle grinder or bench sander.

You can use a Dremel to sharpen tools. Several ways to do it and not necessarily easy to do a neat job. I prefer to clamp the blade and move the wheel along to the edge in a straight line. Always in the proper direction of rotation so that the wheel bites into the edge instead of skating over it. You have to hold the tool firmly and don't keep the wheel on one spot for too long or it will go all over the place and ruin the geometry.

In practice I don't use my Dremel for sharpening very much. For coarse work a file or wet bench grinder is much more effective and for fine grinding and polishing sharpening by hand guarantees better control and consistent angle.