Hey there, hope you and Scorch don't object to me tosing in my $.02 worth.
In my opinion- yes, go ahead and finish with the sand paper wrapped dowel. I suspect it's just the older crowd (mostly) who believe that any sort of bedding is a cure looking for a problem so to speak. Some rifles simply don't need it and gain nothing from it. If, however, you finish the free-float, torque your action screws, and it still does not group well for you- then look into bedding.
On the other hand, there are a great many rifles out there that do gain a lot from different bedding types/jobs.
If you stop what you already started, and begin another project on it- how will you know where any future problems lie? Have you even shot the rifle yet to determine whether it needed anything in the first place? Honest, I'm not gigging your wisdom, integrity, or anything, but I'm starting to get the gut feeling that a fair number of folks purchase a firearm, haul it home, and immediately think something along the lines of, "Hey, a new firearm- I better hurry up and start tweaking and fixing this thing before I go shoot it." Just because you have a firearm does not mean you have to find something wrong with it.
Rednecks... Keeping the woods critter-free since March 2, 1836. (TX Independence Day)
I'm going to use the words "clip" and "Long Colt" every chance I get. It grinds my gears to see new members attacked when we all know dang good and well what's being refered to.