I've been asked this a lot over the past few years, so last night when Kristy H. asked again on the Epbot FB page I figured I'd better get around to posting an official answer!
Dremels are one of those infinitely versatile tools that you'll find yourself using for everything from drilling to sanding to carving, so I definitely recommend buying one if you're the crafty type.
Mine is a Dremel model 4000, but I'm not a stickler for brand names. (I call them all Dremels, but that's actually just the most popular brand of "rotary tools.") Whatever brand you buy, make sure you get a corded model (for more power), and definitely spring for the "flex shaft" attachment - the smaller bit that screws on to the main body:
If you purchase a kit then it will probably come with most of the accessories you need: cutting disks, drum sanders, drill bits, etc. (I spotted two Dremel kit options on Amazon - one for $80, and one for $135, and both are about half of the list price.)
If you want to try any wood carving, there's a pack of specialty bits for that - but I actually found mine marketed as pumpkin carving bits around Halloween. The tips look like this:
I have three sizes of these, which are what I used to carve my Harry Potter wand display:
You'll probably also want a pack of super tiny drill bits; I use those all the time for jewelry and finer pieces. Get the small bits online, though; we found they're MUCH cheaper that way versus the local hardware store. You should be able to get a whole pack of various sizes for well under $10 with shipping. (Check Ebay for those; I didn't see anything great on Amazon.)
For Christmas John also got me a Dremel workstation, aka a drill press stand, which is great for projects where you're either drilling a lot of holes, need those holes to be at perfect right angles, or both.
(Retails for about $65, about $40 on Amazon.)
The stand was a life saver when I was making my light-up copper cane, and it was also perfect for drilling my resin penny bracelet, since I needed those holes to be at perfect right angles.
Other than those projects, though, I haven't really used the drill press. It's one of those add-ons that's invaluable for the right project, but otherwise won't get used a whole lot, so I'd hold off on buying one until you find you actually need it.
K, I think that's everything, so I hope it helps, guys! And happy crafting!