And automotive, Meguiars, if I was to tackle some fairly fine compound, #7 or #9, would that stuff be safe on the nitrocellulose lacquer?
No prior experience with using lacquer, always used stain, usually a hand rubbed finish afterwards..
I think it looks horrible as is, but that adding more lacquer before sanding would be the best course pf action. Nothing finer than 800 will get rid of the orange peel, but it still looks like " a sand-through waiting to happen" because of the coarseness of the grain. Rubbing compound would probably go through the lacquer before really addressing the orange peel.
You could try spraying some thinner, amalgamator, blush-out, or blender to re-flow it a bit and see if that helps.
Are you positive that it's lacquer and not shellac?
OK, the fine automotive polishing compounds are designed to start where papers leave off - typically 2000 or so grit. They are either formulated for application by hand (coarser grit) or machine (either a lambs wool bonnet or a foam buffing pad). They take your finish from smooth to glossy. They will not remove that orange peel. Compounds are also very hard to get out of cracks and the pores themself - think about when you wax your car and you have to get the wax out of little crevices.
If you want to level the orange peel you will need more aggressive sanding - probably around 320 grit. You will probably sand thru so you will need more film thickness, which means more coats.
If you simply want to knock off the finish gloss you can use a scotch bright pad, micro mess or 0000 steel wool. Don't be aggressive, just lightly go over it.
Or, you can consider taking to bare wood and starting over........