All tools have their place but for me the dremel is at the bottom of the list. Sharp knives and gouges are my preferred tools.
Depending on the project, rough out with a chainsaw, angle grinder (flap discs and/or carvers) then gouges and knives. But it really depends on what you cut you are looking to make. The rotary cutters are great for getting in to small or awkward areas but the cut can be quite rough

Angellos