Some builders don't like it because when cut or sanded it creates a fine dust which gets into everything including your lungs. But using a small amount really won't hurt you unless you're cutting a massive amount.
Do we really need to use it in ship modeling? That depends on the model your trying to build. If you want that high-end model, then sure it's a rare wood and that alone adds to the value of the model. But there are different woods and ways to produce the dark wales, caprails and trim work on a model.
Some rosewoods are as black as Ebony and not as hard to use. These rosewoods
have an oil in them and when heated the oil warms up and makes the wood
somewhat pliable. You will need to pin the bent wales because wood with oils
are hard to glue. There are differences in brittle wood and stiff wood.
Rosewood is stiff and can be bent. Ebony is just down-right brittle. Another
way is to use a well-aged American black walnut. This wood is a purplish brown
but with a little stain it can be darkened; it looks great with Swiss pearwood
on a model. If your looking for dark woods try East Indian rosewood, also
called Bombay blackwood or African blackwood; also called Senegal Ebony. When a
oil finish is applied to these woods they will turn almost black.
{David Stevens}
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