A machine on its own won't get rid of all the damage.
Tried it, doesn't work, unless you have a day free to burn out your polisher...
well these are my headlights now, not bad for 7 years old and 74k miles using my method, and having the job done in around 30 minutes a side.They are 95% perfect now.
Not disputing your findings, however assuming you were using your dual action that would likely be your issue. With a rotary you get zero problems especially when using a spot pad.
And you do realise that wet sanding in itself is a more time consuming process in general vs regular machine polishing because you need the extra time to refine back the finish - the purpose of wet sanding is to create a level paint finish, by abrasively removing the peaks / troughs in a paint surface in a more uniform way than you can by machine polishing creating a better and "smoother" appearance of reflection.
This will make little difference when it comes to restoring faded headlights, it does however depend on how "bad" the headlight is.
Wet sanding is a great solution to faded headlights, however you don't need these specialist "headlight restoration" kits, likewise you don't often need to wet sand them, a regular polish would be enough to remove the oxidation (any normal polish/pad/machine/sandpaper would be more than enough) and restore the clarify of the headlights.