Yes - you CAN definitely CAREFULLY and SLOWLY wet sand that - but that looks like a really nice original T2 playfield.
I'd try buffing as much out as I could first to easily see what / where I had to wet sand and then would start with no courser than 800 grit.
If you have not done this before you may want to forget sanding and just buff it with the 3m perfect-it system only and live with minor imperfections.
Looks like you need to reglue your inserts from the bottom too.
Good luck with it - and if you try wet sanding be careful not to burn through the clear.