Are engraved dice unbalanced or biased?
Most customers do not think much about how fair their dice are.
Does this worsen the distribution of outcomes (make the die biased)?
Yes, slightly. I've included some research below on Chessex and Gamescience dice to show how much.
Does this counter the effect of unequal removed material?
No. In the case of casino dice there is a lot of work put into making them as close to fair as possible. They are better than your typical die, but still not perfectly random.
Should I consider removed material during the engraving process instead?
If you intended market is customers very concerned with how fair the dice are, you will need to look to the casino dice process. But my advice is not worry too much about it. Most people will likely never notice them being off slightly.
I've included analyses here.
There have been many comparisons of dice in the past, here is one comparing Chessex (leader by quantity) and Gamescience ("High Impact Precision Dice").
A casual analysis of the results suggests that neither die is rolling randomly.
While neither die rolled true, it’s certain that the Chessex die rolled less true, with a greater degree of deviation from the expected range across more of the dice faces. Interestingly, the GameScience die actually rolled very close to true except for the number 14 which rolled vastly less often than it should have, farther off than any face of the Chessex d20.
They noticed a flashing from the manufacturing process that may explain the low number of times the die landed on a 14:
this flashing is on the 7 face — directly opposite the 14
A far more detailed analysis has been done by WKU:
They had some conclusions:
All dice are unfair because they cannot be precisely manufactured with uniform density and dimensional correctness. However, the number of rolls required to detect the unfairness of a casino die manufactured to a few ten thousandths of an inch tolerance is very high.
The manner in which a die is rolled makes a large difference in the face probabilities. It varies with surface and the manner in which it is rolled, that is, dice cup to felt, drop from a height to a hard surface, or rolling in a dice tower.