A danish oil finish is nearly no finish. It's a watered down mixture of varnish and either tung oil or linseed oil. The grain filler is almost as much of a finish. Polyurethane puts a plastic coating over the wood. If it were me I would fill the grain with a walnut tinted pastewood grain filler and finish it with a pre-catalyzed lacquer. Lacquer is a thinner finish which looks more natural than polyurethane. It's also a lot quicker and easier to work with. A coat will dry to touch in 15 minutes or less compared to 8 hours or more with polyurethane. Polyurethane is more waterproof though so if the project is exposed to water a lot may be a better choice.
The grain filler I use is this one. http://www.mohawk-finishing.com/catalog_browse.asp?ictNbr=105 It comes very thick so you thin it with naphtha or mineral spirits. You brush it on and allow it to thicken and either rub it into the grain with a coarse cloth in a circular motion or squeege the excess off with a squeege like you clean a car windshield off with. After allowing it to dry overnight you lightly sand off any excess film that may still be on the surface of the wood and start finishing. You can then use the Danish oil or start finishing with polyurethane or seal with vinyl sealer for a pre-catalyzed lacquer. When working with woods containing a grain filler be sure to allow the finish to dry overnight before sanding. The solvents in a finish will cause the grain filler to swell and if you sand it too soon will sand the finish too thin where the filler is. Then after the grain filler shrinks down it takes on the appearance the grain wasn't filled and you end up having to put a lot of extra finish on to level the surface.
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