Are multi-tools (e.g. Dremel or similar rotary tool) good for cutting straight lines? No.
My rules of thumb:
- if you are cutting long, skinny things into shorter, skinny things, use a mitre saw (a.k.a. chop saw)
- if you are cutting long, skinny things into long, skinnier things, use a table saw
- if you are cutting sheets (not drywall) into convex polygons, use a circular saw and straight-edge guide (available from good tool suppliers)
- if you are cutting sheets into complicated, concave shapes, use a jigsaw
- if you are putting fancy edges on things, use a router
- if you are cutting drywall, use a utility knife
You can do #1 with a circular saw easily (with a guide), and #3 also. You can also do #2 with a circular saw and a guide clamped to the saw base. It's not fun, IMHO. You can do #1 on a table saw if it has a large enough table and a shop-made sled. You can also do #3 on a table saw with a large table and/or a helper and in-feed and out-feed rollers, and being very, very careful.
For home construction-type projects I would prioritize a drill + circular saw, table saw, mitre saw, jigsaw (if you are sure you are never going to cut something that isn't easily portable, you can swap mitre and circular saw positions). A reciprocating saw (sawzall) is indispensable for demolition work.
If you are doing more craft/furniture type woodworking, it would go: drill & table saw, mitre-saw, router, jigsaw.
You will also need one or two hand saws. I recommend Japanese saws.
You'll note that a drill is at the top of both lists, and the table saw is near the top of both. That's just my opinion. Others may differ, but when you learn how to really use the table saw, there isn't a lot you can't do with it. Here are some images from a Greenland-style kayak paddle I am building out of scrap wood I found around the house: All cuts were made on a table saw, with the exception of the cross-cuts for the parts I assembled the stock out of (2x4s ripped and cut up to eliminate the worst knots, and I could have easily done those on the table saw except that I have access to a mitre saw and it was quicker to skip the setup), and some touch up with a Japanese hand saw.
I think you will find using a multi-tool will be frustrating to get good results (I know, I know, poor carpenter, tools, blame, but I'm not claiming to be a good carpenter), but I own and still use a Dremel. It's about 20 years old, but while I use it much less now that I've built up my collection of other tools, there are still jobs I'll pull it out for because it really is the best (or easiest) tool for the job (or at least the best tool in my toolbox).