First, not using the steel wool was a happy accident. You can find numerous anti-steel wool posts of mine here if you're so inclined.I was planning to 0000 wire wool but I forgot. Instead I went at it with my (not) dremel with a polishing wheel and compound.
As for the rotary tool, some say it's ok, others not so. There is an argument that a rotary tool will heat the fret wire too much and potentially soften any glue causing the fret to lift. It's not without merit, but I think there are a number of variables to be considered. I have done it a few times in the past, but have changed my method for other reasons.
The best way to do this is with a fret end file. There are videos on YT that show (varying) ways to do this.And I still have a little bit sharpness when I run my hand down the ends of the fret board - much better than it was but I might revisit to address these niggles.
If you don't have a proper fret end file, it can be done with a flat or triangular jeweller's file BUT the files should be modified to have "safe edges". You should start with good quality jeweller's files, not $5 sets you get at the dollar store.
I just posted about this yesterday showing my DIY files. I also have a proper fret end file that cost about $35AU for the one file, but I use both my DIY safe edge files and that one regularly.
Here's the photo I posted yesterday on similar but different topic:
Not a great pic, but hopefully demonstrates the concept well enough.
Those fret dots look great too!