BG,
Most of the stuff that makes wet/dry sandpaper is actually embedded in or on the nylon material that makes up the Scotch-Brite. CHeck the 3M website to verify. That said, I find it hard to believe that a dry nylon pad cuts smoother than a wet on, although I have heard the same here.
The material that makes up the coverstock should not be up in the air where you can breathe it; that is a another excellent reason to wet the nylon pad, as Ty describes his process. That is more or less what I do also. Spary bottle in hand, wet ball and pad, press, spray more to keep the surface wet. Wipe off with a paper towel and more water.
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"Those who do not remember history are doomed to repeat it."