I have the 3500 and I have engraved wood, leather and even antler with it. The antler is a little tougher but you can also set the engraver to do more than one pass on the engraving. Each pass will burn a little deeper. I have actually cut light veneer with 2 passes. I think the 7w would do much better though. The 20w is suppose to be able to engrave metal. As I haven't had a need for either yet, the 3500 is fine for wood and leather. I have done 3 passes on a piece of wood and it burned enough to put an inlay in.
1st - Here's my inlay with mica powder.
2nd - is some wood engraving
3rd - is depth cut with 2 passes using the 3500
4th - Leather engraving
5th - Antler