People who skin polish sapphires use lemon wood for a buff.
This is a tiny toothpick size piece of twig held in the dremel and loaded with diamond powder.
I think it's more to do with the flexibilty and hardness of the wood than anything else, it's just right for this job.
For cabs I suggest felt or leather with tin or cerium oxide.
Diamond powders can be used with these too, even a fine grained medium hardness wood (possibly lemon wood) can make a good buff for some stones.
For stones that undercut I always try a wood buff with Chome oxide, it works for some.