I have been using a coal slag abrasive called "Black Beauty", it is cheaper than aluminum oxide or silicon carbide and has a decent service life. It is a sharp, angular grit which gives a finish similar to these abrasives, overall it has worked well for me but I am wanting to get a smoother finish, the abraded finish does not clean very well.
I am going to try fine glass beads, I ordered some yesterday.
Whatever you are using to blast, you can "cut" or over-polish the finish with scotch-brite and get a somewhat smoother, more satin-ey finish that is still non-reflective and looks like it should absorb light scratches and wear pretty nicely. This seems like a good option for knives with kydex pants especially.
The more I read on this subject the more I think that a lot of the rust issues associated with bead blasting might stem as much from a very rough finish prior to blasting. It is pretty natural to want to stop grinding at a rough grit and go directly to blasting but the coarse scratches will remain under the finish, and if you imagine what happens when the beads bombard the edges of these scratches, it is no surprise that there are rust issues. I suspect a thorough 400 or 600 grit finish before blasting might help quite a bit with the rust.