I have exactly 0% successful experience sanding figured veneer. Every stain I have tried to do on veneer, I have managed to sand through. It is amazingly easy, and once you've done it, there is not much you can do to repair it. I don't think you'll bring out much more wood grain by sanding. Just my 2 cents. Drashkum has had pretty good results and recently so I'd listen to him... Still if it's sanded down to 220 or even 180 grit smooth, I'd be inclined to build up some clear coat before sanding further.