Ya, air tools are very inefficient at transmitting power. Going with something electric might be better unless you need air powered for some specific reason.
None of the other cutting methods will work for my needs. There is NOTHING out there, which will do what I need at this point, (at least that I have found over the last 3 years) therefore, I am designing and building it. However, my current need is a power source. Electric is fine, but it can't be very large, as the work will need to be done single handed and I think trying to manipulate a 'small grinder' sized power source with my cutting head attached would be too cumbersome. Therefore, I have been thinking of alternatives.
The 2 I've come up with so far:
1. Something like an air powered device in which the handle/motor is a small unit, which would allow me to grip and handle the power and cutter in a way which is more likely to work than an electric motor unit.
2. A Flex-shaft device of some sort in which I can attach the head to the shaft and use it in that manner.
Ultimately, if my project works out, I will finish my CNC design, but that is going to be real $$$ in both investment in Engineers as well as materials. I have to prove my product before I worry about how to produce it better.
I am making custom pillows for my patients with special requirements. They work... but I cannot realistically make them in the manner I have been... ie a kitchen carving knife.