Sanding dust, essentially saw dust or wood dust, can be a good contribution to the needed soil organic matter and could be used as mulch or added to the compost pile. I would not work that into my soils since the very high Carbon to Nitrogen ratio, 400/500 to 1, could very well cause a temporary tie up of Nitrogen. A mixture of 1 part of this dust to 1 part of a Nitrogen source in the compost bin would probably be necesary.
That dust will not make your soil any more acidic than would pine needles, and they don't significantly change it.

There isn't much more you can do with wood dust besides mulch and compost. The good news is, if you have room, you can store it indefinitely, and it will very slowly decompose on its own, as opposed to 'greens' which can't be stored easily. Some folks will be jealous of your organic matter supply!

Ive been thinking about this and getting more jealous by the hour.

I love the idea of having this stuff on hand to add to your pile as needed.

What I love even more is the idea of using this stuff as garden paths or garden borders. You could make a corner garden bed look like the beach.

I need to find me some of this stuff!

It would look nice topping off your potted plants too :-)