Down is good for cheap plywood, but you need to worry about chips staying in the groove and definitely no straight plunging or drilling (even with pecking). The upcut single flute in Ryan’s shop does a great job, even eith my mediocre plywood, but if there are any spots where the veneer isn’t well glued, it will pull that right up.
For the most part, wood is very forgiving, and I haven’t ended up painting any of them out of shame. That sounds strange… I haven’t had enough shame to feel like I couldn’t clear coat them. They all turned out ok.