i would. when i carved my only homemade pipe to date i used soft wheels to buff it with tripoli and then polish with carnauba. i would also use tripoli to buff out chatter and oxidation on a stem. i locked my drill in the on position while it was mounted in a vice, allowing me to have both hands on the pipe. might wanna try on scrap wood or a cheap pipe while developing a feel for it.
i would NEVER use a dremel. that focuses all the pressure to one small area, making it very easy to cut a dent or groove.
when buffing any wood finishes with a wheel care must be taken to go gentle and slow; hold the pipe firmly but touch it to the wheel very gently. the tendency might be to go gentle with your grip when easing back from the wheel, or going heavily into the wheel when tightening your grip - those are bad ideas.
also, care must be taken not to overheat the finish. too much buffing at one time can do this.
if you're afraid to use the home depot stuff, go to the pimopipecraft.com website and buy their wheels and compounds.