I think that looks fine..........It's wood, and you have to come to terms with the nature of the material with which you're working. If I wanted a spoon as smooth as you seem to aspire to I'd be using stainless steel or some other material suited by it's nature to that degree of smoothness of surface. Those tool marks are what gives a wooden artifact it's character, and remember that it will also smooth and "weather" in use. I'd be very happy with that, were I in your place!
Oiling is exactly the same process in either case, tooled or sanded.
I'd get on and make another spoon (or something else), and you'll be surprised how your attitude towards this one will change; you'll gain a different and more objective perspective.................