I "wet sand" finishes but not bare wood. The main finish type that I wet sand is when I'm going for a "piano finish" on something. For instance, the oil drop turnings that I made about a year ago had around 20-30 coats of black lacquer on them. Between each coat of lacquer, I hand sanded from
600 - 1200 grit with water-soaked wet/dry automotive sandpaper. I tried several different lubricants (the "wet" in wet sanding of finishes) but water worked best this time. This gave me a great, deep, wet look that I wanted. Had I gone longer, I would have developed a highly polished, mirror-like finish effect instead of a dead black "oil" effect that I got.Otherwise, I think maybe you're just thinking of raising the grain in order to sand it off and get a smoother finish? If that's the case, then I do that all of the time with flat work, not too often in woodturning. However, I don't use water. I use a faster evaporating liquid like mineral spirits (pretty quick) on up to toluene (nasty stuff but evaporates really quickly) so that don't have to wait around to finish things up. Using water: just use a spritz bottle and spray the wood a little all around. You don't need to soak the piece. Wait however long to let it surface dry and raise the grain. Sand very lightly with your final grit sandpaper. Don't wet your sandpaper.
On the other hand, you may have heard of the process of sanding woodturnings when wet either by water or wax or mineral oil. I believe in most of those cases, it's the slurry that's often produced and fills in the pores of the wood that's giving the smoother feeling to some woodturnings. I don't like the look of pieces where this has been done as it looks muddy and fuzzy. No clear definition of the grain, etc.
I don't like to do this with anything but tough pieces that are going to be finished with mineral oil (plus other stuff maybe) anyway and are experiencing bad problems with tearout. For the truely terrible pieces with tearout problems, I use other methods but that's a different discussion. The mineral oil (or equivalent) will help to stiffen the fibers and fill the intra-fiber areas so that I can more easily shear them off with a tool. But then you tend to have other problems such as the muddy appearance mentioned above.
Hope this helps,
- Andrew