I've used Zinc Stearate for dope filler for years as recommended by Randy Smith to me way back. The Zinc Stearate is way lighter than just about anything else and mixes in nicely and stays in suspension quite a while.
As far as sanding and breathing goes, zinc stearate is generally considered to be less toxic than talc powder. While talc can be a source of asbestos, or carcinogenic and maybe even mildly radioactive (I know I know Brett), zinc stearate is considered a non-toxic substance with low overall toxicity. Micro balloons of any type are something I would want to avoid breathing while sanding as well.
Bottom line, occasional use probably won't ever affect the typical 1 plane per year builder, but I'd wear a particle mask just the same when sanding anything, period, because even something as seemingly harmless as balsa wood has a cumulative allergic effect on a lot of people over the years. YMMV.
EricV