The answer is yes. The Dremel 7700 can be used to file down thick toenails.
This dremel is ideal for Podiatrists, Nurses or people who suffer from thick toenails. It is inexpensive retailing at only $30. It has two speeds (which is really all you really need in debriding thick toenails). I would not get this if I was running a nail salon or seeing patients in a Podiatrists office. There are much better dremels for that work.
This dremel is portable and easy to use. The only thing you will need to change is the bits on the dremel. This dremel is perfect for the Nurse in a nursing home, a podiatry student, podiatrist working at nursing homes, or that at home person who wants to thin their thick toenails. The number one negative for this dremel is the lack of a nail dust extractor. However, if you are not doing a lot of toenails every day, that will not be an issue. If you feel you need to nail dust extractors can be bought extra. Below I have provided a link to this dremel as well as a nail durst extractor should you desire.
***Unfortunately the deemed 7700 is no longer available. However the Dremel 7300 is basically the same thing that can accomplish everything the 7700 did at one low price.***