I generally don't use steel wool or synthetic pads between coats - at least until the finish is as flat and blemish free as I want it. Steel wool doesn't really lessen blemishes, it just hides them from view. To eliminate blemishes, fill small pores, eliminate brush strokes etc. you have to sand them out. Sanding is much more effective than steel wool but is much more dangerous. It depends on the quality of finish you're trying to achieve.
I totally agree with what others have said: 6000 grit for between coat sanding won't accomplish much except getting you tired. Even when rubbing out the final coat, you'd have to work your way up through the grits to 6000 and that's a lot of work. Assuming you're going for a shiny gloss finish I would stop at 2000 and switch to automobile compounds. Since I don't use water base finishes, I don't know how well they work on these finishes (or if they work at all), but on oil base and lacquer they work great. At any rate, I wouldn't use steel wool on water base finishes unless you're going for the old, rusty look.
Ernie