I have not tried this method, but I work with MDF quite a bit.
I work in a cabinet shop and have done a little research on MDF for our spoilboard on the CNC router. (As well as using it in cabinets!)
There are three major divisions in the density of fiber board, as MichaelMouse points out.
Low Density Fiber (LDF)
Medium Density Fiberboard (MDF)
High Density Fiberboard (HDF)
(These can also come with a Melamine, vinyl, or veneer, either on one side or both sides.)
There are specific density standards which they must adhere to. I'm not sure without looking them up again exactly what the ranges are. But suffice it to say that the more resin in them the more dense and heavy they are.
There are various grades within these divisions as well. We are currently using a "door grade" from which MDF doors are made. This is a high quality product which machines well and has very smooth "grain" which sands and paints well. You could also use a "molding grade" for a similar finish. Some MDF's don't finish well because the surface is a little rough after machining. It takes a lot of sanding and filling to get it to look good.
(I doubt very much that manufacturers of this product would appreciate our view that it is made from "floor sweepings." They take pride in getting a good material to work with in making this stuff. "Pure yellow Pine" (or whatever species they use) and "only the best" blah blah blah is what you see on their websites... 😀 )
But I would think that most MDF's would be suitable for this application.
Fiberboards are created with a lot of heat, resin, and pressure. The outside surfaces are usually more dense and smooth than the rest of the material in my experience. The particles also need to be quite uniform so as to meet the standards. So even if there are variations in the particle size, there is still a smooth surface because of quantity of glue on the outside surface. I instruct my CNC operator to flycut at LEAST the first .020" (if not .050") off of each side of the spoilboard to get good flow through it. Indeed, it is standard practice in the industry...
I would think that the abrasive that you charge it with would do most of the cutting/polishing action rather than the MDF itself. The reason for using MDF is that it is uniformly flat, stable, and inexpensive.
These are not to be confused with Particle Board which is used with Laminate countertops. Particle board can also come with Melamine (a very thin laminate) surfaces, one or both sides. You can easily see the chunks of wood in this material. It is quite inferior to what we call MDF. I am wondering if this is what you got instead of MDF. 😕