I drill all of my button holes with a hand drill, and they may not be perfect, but i am happy with how they turned out.
on a side note, the router attachment for the dremel is a handy piece of equipment also, it is small, so it isnt reccomended for large routing tasks (took like 30min to route out a place for my trackball). but it's small size can also be an advantage. i was going to use a regular router to round over the edges of my control panel, but it was just too much, it didnt look right, but with the tiny dremel bit, it just rounds over the very edge, it is subtle and much better looking. The small size makes it nice for getting into areas where a real router is a tight fit...and it doesnt through dust around like a real router. It makes a bit of a mess, but not too much...i would use it indoors again.