If the leather is very hard, sanding can definitely make an improvement. Depending on the compound and how its applied, doing this can make a big difference in how thin and uniform it can be worked into the leather. In my experience using the sueded side of the leather is only good for larger grit compounds and the smooth side is better for finer abrasives. Again, this is going to be effected by a number of factors - compound with a hard vehicle will make most of the nap embed flat in very short order, but allow the option of "refreshing" the compound simply by rubbing it with a fingertip or another piece of leather.
Have also experimented with boiled leather and the surface was so unyielding and smooth that the thinnest of compound films could be wiped off almost without a trace (even microscopically) with a fingertip. In this case roughing it up with a 32 TPI hacksaw blade worked very well.
There are too many variables involved in stropping - between compound vehicle, density and composition of backing, blanket statements are tough to make, even when it comes to cleaning.
To the OP, you might try the alcohol and scrape it in the direction of the nap using the back of a saw blade or spine of an old knife, edge of a putty knife etc instead of Scotchbrite. You just want to get the old compound out of there. A bit of soapy water will can be used in this manner too, and allows you to rinse it off afterward. Oils work as well, by breaking down the binder in the compound, but over time can build up in the leather and change the character of the strop - maybe for better maybe for worse. Washing it with soap and water and having it dry repeatedly will change it too, but will make the leather harder rather than softer - again changing the character of the strop for better or worse. All depends on how often it needs cleaning.
Compound loaded with swarf does not function like a fresh hit of compound - this is probably what's effecting your results more than the nap lying flat, and why for loaded stropping I just use a sheet of paper. Recycle it when it loads up and the action is always the same.