I have a Faggin frame from the late 80's, which is in pretty good condition except for the paint. So I was thinking about getting it sandblasted and powdercoated, but someone just mentioned I might not want to sandblast an old frame because it is too delicate. What do you guys think? Am I okay to sandblast it?

I think if it is to delicate to handle a bead blast then it is to delicate to ride. That said, I wouldn't go after it with real course material either, i usually get the finest sand I can get for my blasting.

SANDblasting would be too coarse unless the blaster uses a finer grit and knows their stuff. But there's so many other blast media that it is not a problem. Talk to your blaster guy about what you have and what he's got. Once you show him how light the tubes are and what metal they are he'll know which media to use. Don't worry about your friend's opinion. They obviously think that the only sort of sandblasting out there is what is done on old bridges or to restore stone buildings.

What's "too delicate?" Rusted through? When I had my Bridgestone repainted (powder-coated), the service included the prep work. I would think that any fatal flaws (if there are any) would show up at that point, before the paint gets applied.

Powder coater will do both , oils from your hands may make the PC job uneven if handled between steps

I wouldn't worry. Given the tight curves of bicycle tubing you'd have to hit it with some really coarse stuff for anything to happen, even if the tubing is thin-walled.
Those concerns are more relevant when you have flat, thin-walled stuff. Car panels for instance can be a questionable choice for media blasting.

Use glass bead not sand.

I assume that is a steel frame. Just use Aircraft Stripper...Home Depot about $10 can. Messy but does a good job.

FWIW....if you take it to a powder coater they will probably want to chemically strip the frame themselves anyway.

Forego the blasting.

use a soda blaster. Works great and no damage.

Always something new to learn. Interesting, thanks.