The Kutzall 1/8 bits pretty cool for sculpting wood, plastics, etc

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Here's a picture of my favorite Dremell bits . You've already got my biggest recomendation covered which is the flex-shaft. That thing allows you more finess like using a marker than a power tool. I recomend putting a hook into the wall about 24"-36" over your work table to hang the dremel up there while you use the flex shaft. My go to bits (really the only ones I use) are (in order of usage) grinding drums and other stones (I like 952 the most, but use 8175, 932, 953 a lot as well.) Always have a fresh one for backup. It's always the projects you least expect that wear down your stones super fast. the sanding drums with replaceable pads in both 1/4" and 1/2" (a while back I had to start buying the drums over the internet) . I love these things, they solve all sorts of problems with wood. Also do some nice work in foam carving as well. *Engraving I use 105, 106 and 107. They do well with small wood carving as well. I made a Klien Bottle that is only about 1.5" tall out of a solid piece of red oak using mostly this before hand sanding. (190, 191 1nd 192 might have actually been the bits I used for wood.) 199 which is basically a tiny circular saw on a stick. Great for all sorts of bigger cutting chopping and even some carving depending on the scale and material. the abrasive cutting discs (as was recommended, there's two kinds, get the kind that doesn't explode) but I don't use these so much any more becuase I have a 3" shop saw with an abrassive blade and fence so that I can clamp in a stop block and do repeat cuts. More on reddit.com

I'd recommend the proxxon micromot series over the original Dremel. The tool is basically the same, most bits are interchangeable, but it's a bit more sturdy. And the accessoires are (mostly) made of metal, while the dremel is plastic. If you don't want a lot of stuff, a cordless drill and some small files get the job done as well. More on reddit.com

I've used dremels heavily since the 1970's, and the ONLY tools I've found that are as good or better than the Dremel products are, specifically, the 1/8in router bit profiles from Lee Valley. They are even more expensive than Dremels offerings, but they are carbide bits and last forever. I use a 4300 in the Veritas plunge router base as a trim router. The 4300 has plenty of power, and the Veritas bits are excellent, even on full size projects. I have tubs of junk bits from all kinds of Chinese makes that were either junk out of the package, or wore out very quickly. Foredom & Proxxon also make good quality stuff, also expensive. The thing is, you really don't want to skimp on a tool that is going to be spinning at 30,000 RPM that was poorly made, with questionable materials and may or may not be correctly balanced. Some things are simply worth the extra cost More on reddit.com