You'll get much better results with a ball end mill with a diameter similar to the flat end on the engraving bit. In this case a 1/64" ball would be pretty close.
To really illustrate the differences visually, scale up everything 10x. Scale up the conical tool with flat to .120 (1/8" close enough) and model 10x. Then run a sim with a .120 or 1/8" square end mill (same result as conical tool because 3D only cares about the tip) and then run a toolpath with the same size ball end mill. The results will be clear.
Another reason you don't want to run a squared off tool compared to a ball when 3D finishing is that it can cause gouging on the surface...and then of course there is the time factor due to the tight stepover. A ball run @ 10% will look better than an engraving tool at 5%.
-B