I think shiftysquirrel might have meant something else, having re-readhis original post. He says the grain is very rough, and no amount of sanding will smooth it.
This sounds to me as if his "cedar" has particularly soft wood between the grain lines. The sanding takes more of this away than the hard lines, leaving a ridged surface. If I have this right, the sanded surface should feel fuzzy or fluffy when stroked gently.
My solution would be to apply a coat or two of the intended finish, let it cure, and then sand. Maybe repeat once or twice. This should stabilise the softer material and allow you to get a reasonably flat surface.
It would be worth trying this out on the discarded soundboard.
And is 1.5mm really too thin for eg a soprano top? I can see that it would be for a tenor, but even here slightly taller bracing might make it usable. But I've never built with any kind of cedar - I've taken a spruce top to around 1.5mm and it worked fine, but I gather cedar is floppier.