Yes, as a matter of fact I just buffed out a tru-oiled neck with a polishing wheel (sewn cotton) and Dico compound. Ordinarily I would use white rouge (WR1)but couldn't find that tube so I used the one for plastics (PBC.) I wet sanded with 600 grit paper and mineral spirits to an even matte then used the loaded wheel and it came out great. You can get such wheels with an arbor designed for use with a hand drill.
Yes hand buffing works too. I'm just getting old enough that if there is a power tool option I'll take it. As mentioned the stuff is relatively soft and if you go the power option you'll need to keep things moving otherwise you do risk burning right through the finish.
Meguiars makes a product called Plastx that works great on poly finishes when working by hand, I'd be willing to bet it works well on Tru-oil also.
I have to agree that the tru oil is a thin finish, be gentle with your buffing. I've used a handrill and meguire's x with a buffing wheel on a thick clear finish, it came out pretty good. But I'd start out as gentle as possible and work my way up to more agreesive slowly.