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Boy oh boy do I hate removing flash. Scraping with a knife is slow, error-prone and doesn't always result in the best finish. There must be a better way to do this. Are there any power-tooly ways to do this better? Like some kind of very gentle Dremel deal? I would sure love to be able to produce better results much more quickly. Suggestions?

Anything motorised, whilst probably quicker, will most certainly resolve in your ruining the model. Just too much power for a delicate job.

The tool that changed everything around for me, because using a knife is dangerous on the details hence taking a long time, is GW's flash remover. It comes with a useless brush (toothbrush is better) but the tool is great.

http://www.games-workshop.com/gws/catalog/productDetail.jsp?prodId=prod1380022a

Have to agree that the GW tool is pretty good.
I do use it on conjuncion with a knife & file to get the best results though.
Sometimes I even use wet & dry paper too if I'm feeling particularly anal.

I've heard generally good things about the MicroMark Seam Scraper. The triangular cutting head lets you lay a face against the surface behind the leading cutting edge, keeping a proper angle to shave away the mold line (like the shoe of a plane stabilizes the iron). Problem is, you need a reasonably flat surface for that to work and mold lines on most troop and MC models are in more precarious positions. Even if it's an improvement when it can be used, you'd still have to resort to the usual method for the tricky spots (which could end up being more than half of the model, depending on the sculpt).

Rotary tools, as Rusty Robot says, are generally overpowered. Anything that can abrade away a mold line can also abrade away nearby surface details and quickly. Many bits would also leave a rough finish, requiring further cleanup that negates any time and effort saved. Really, though, the difficulty in controlling them with the necessary degree of accuracy makes is what makes their use for the task a fool's errand, as far as I'm concerned.

Honestly, I don't think there is a faster, easier way to go about it than the classic knife/files/emery board route. Practice increases speed and quality of finish, of course, but there's a limit. I think you just have to grin and bear it. Since mold line removal is so widely held to be the single most odious task in the painting and modelling process, I would imagine that if anyone found a much better way, we'd all have heard of it, by now.

I can vouch for micromark's seam scraper. it's a great little tool. it works much the same way that using the back of your hobby knife does, but the scraper is much more rigid (better control) and doesn't dull like knife blades do. the point on the scraper is so fine that you can get it anywhere you can get a hobby knife. what I normally do is use a hobby knife to remove any big chunks of flash and to smooth out the bits where it was connected to the sprue. then I go in with the scraper and clean up the other mold lines. for larger, more prominent areas (thighs on a space marine, top of the helmet, etc) I'll hit them with a couple different grades of sandpaper to make sure they're extra smooth. it's a slow process, but I'm super anal about cleaning up mold lines.