I sometimes use a sanding pad in a hand drill for the outside of a bowl. I like the fact that, with the lathe running and the pad spinning I can get an even, almost non-directional sanding finish. There's a trick to this. If the bowl is spinning too fast it will overwhelm the swirling pattern and you will wind up only slightly better off than just using a handheld pad on a rotating bowl. On the Jet 1642EVS that is my main lathe I run it around 100 rpm. This makes the spinning drill easier to control, as well.
If I'm just putting on a finishing surface I'l start at 320. If I'm trying to correct a problem then I go low enough to do the job and run the grits up. Once the 320 grit is done I put on a coat of waterlox filler and tough up by hand. Then I use 400 grit and switch to waterlox finish until I feel I have a good even coat. Lately I've been finishing up with 0000 steel wool then buff it out and wax.
If I don't want a glossy finish I may use Velvit oil instead of Waterlox.
Marc