Hello,
On my CNC router I have used almost every kind of (cheap) router, dremel, rotozip, tool you can name. Bottom line none are perfect.
Dremels after about 60-70 hours of cutting burn up brushes, I even had Dremel tool that bent the shaft inside the tool.
Cut-off tools I picked up 3 of them online for 10 bucks each. Same... burned up brushes at the same rate as dremel tools PLUS the one I had from Homier distributors was really LOUD>>>> Ear plugs required.
For my hobby machine (engraving into wood only) I'm sticking with a Dremel tool because of cost, noise, and convenience. Right now I'm trying out a "dremel tool" made by Black and Decker which has nice options for a CNC setup. It locks with a lever for easy tool changes and has variable speeds. Of course on my setup my max cutting speed is only 21 IPM which is kind of slow but it works for what I'm doing.