+1 on the Foredom. Amateur Bubba uses a Dremel; smiths and saavy Bubba (me) uses a Foredom. Most recently, the little 1/2hp wonder was used to cut an M1 Garand receiver to take magazines, and fit in a BM59 stock. Not pretty (yet; I still need to stone the bumps smooth) but perfectly functional.
As for carving...
Who in their right mind would use any rotary tool for the task? You want your stock/parts/backstrap/etc. to look like it was whittled by beavers? Use a rasp or file, for Pete's sake. Apart from being smoother, more precise, and all around superior, it's usually faster (than a Dremel, at least) to boot. Might as well use an angle grinder, it's nearly as careful.*
TCB
*I've seen some pretty amazing and precise stuff done with grinders, like Jaco derringers and the like, but it's a rare man who has enough practice with one and still retains all his digits who can pull that off.