Sanding past 220 or 240 on raw wood is a waste of time and sandpaper. It will most likely INCREASE the chance of blotching since now the wood is burnished.
Wipe-on then wipe-off is an oil/varnish technique... with wipe-on varnish it will greatly increase the amount of wipe-on varnish used (manufactures encourage this) it may marginally help get even sheen. Flooding the first coat or wiping a less diluted wipe-on varnish would do the same thing.
Scott
Finishing is an 'Art & a Science'. Actually, it is a process. You must understand the properties and tendencies of the finish you are using. You must know the proper steps and techniques, then you must execute them properly.