Yup. When I painted my Corvette many moons ago I color sanded the whole car with first 600 grit paper, then 1000 grit and then 2000 grit. I then power sanded the whole car with a commercial grade cut polisher(very low rpm unit) turning a real sheepskin pad. Even at low rpm's you have to be careful not to burn thru the paint on the edges.The result was phenomanal. I have cut polished vehicles by hand before however that was only to raise some of the original lustre. No color sanding involved. Base/Clear paint processes on most newer vehicles have made cut polishing somewhat obsolete now.
By the way, by the time I'd finished polishing my Corvette I had more money tied up in polishes,waxes and glaze than I had into the paint and primer.
Dave