Paper finer than 220 grit can certainly cut wood just fine. Burnishing is usually restricted to after staining at the earliest, in order to not close off pores for stain absorbtion. The primary reason for deciding between sanding and scraping is efficeincy of work and the desired final effect. Sanding and scraping create different final surface finishes. Not necessarily because of pores being closed or not, but simply because of the nature of each process. Scraping can create fine flat ridges and can follow curl to some degree depending on techniques used. Sanding results in a much more uniform surface, but perhaps less interesting in some regards. As to your final qustion of what happens to the wood with different surface prep techniques, I don't really give it much consideration since all that matters in the end are results.