If you hold this post up to your ear, you can hear the purists cringing...
I've not, but have polished other things. Either of those methods would work. To get rid of the stonewash scratches you'll probably want to take your time starting with something around 300 or 400 grit. If you progress to around 1500 or 2000 grit with sandpaper, or equivalent with stones, you could save time for the final pollish with a buffing wheel and some compound. If you have a handheld buffer like for a car, you can put it in a vice and use it like a bench tool with some Flitz or some other compound on a buffing pad.
The hard part is finding scratches you didn't work out from the stonewash/lower grits, which are hard to see until you've got it pretty polished. Then you have to go back and rework those areas from low to high grit again. How perfect do you want it to be?
Patience is probably the most important tool for this job, as the wear resistant Delta 3V is not going to make this job easy on you.
Some thoughts: Not sure what this will do to the resale value. Also this seems like a long job to get to "perfect." I imagine you'll polish under the scales too? From what I know, it takes a Japanese sword polisher around a month of fulltime work to polish a sword with finger stones. If you're a perfectionist, but you're like me and lose interest before this kind of lengthy job is complete, you'll end up with a half-done knife, without many options other than sending it to someone else to either finish the job (something you might consider doing from the start if you're serious), or sending it back to the factory to redo the stonewash and resharpen.
So before you start, and knowing yourself, make double-sure you're double-sure.
Good luck!