Yeah, I'm not sure about the historical accuracy of the scenery. I'm sure some of them were nice. I was shown a table once that was actually made by an company that served as undertakers. Consider that they were making coffins also, so some fine woodworking may have been expected. I'm sure not everyone was buried in the rustic boxes you see in the movies.
This was a golden age for fine woodworking. The craftsman and the apprentice. Skills were passed down and people took pride in their work.
I honestly don't know about the prevalence of sandpaper at this time. Smoothing planes were used and they can create a very fine surface. As far as finish goes, shellac would have been the most widely used film finish at the time. It is what you'll see on furniture 90+ years old, before nitrocellulose lacquers were common. Shellac can be polished to a very high sheen, though it's not very resistant to water and alcohol. I recommend researching shellac, it's actually quite fascinating how it's "harvested".