I have recently read that the dimensional regularization scheme is "special" because power law divergences are absent. It was argued that power law divergences were unphysical and that there was no fine-tuning problem. I was immediately suspicious.
Let us take $\lambda\phi^4$ theory. For the renormalized mass $m$ (not a physical mass) with dimensional regularization, $$ m^2_\text{phys} = m^2(\mu) + m^2_\text{phys}\frac{\lambda}{16\pi^2}\ln({\mu^2}/{m^2_\text{phys}}) $$ This looks promising, but $m$ is a renormalized mass, not a true parameter of a Lagrangian that will be set by some new physics, like string theory or whatever it is.
For the Lagrangian mass with a cut-off regulator, $$ m^2_\text{phys} = m_0^2(\Lambda) + \frac{\lambda}{16\pi^2} \Lambda^2 $$ which is basically what I understand to be the fine-tuning problem. We would need incredible cancellations for $m_0\ll \Lambda$ at the low scale. Here I understand $m_0$ to be a "real" parameter determining the theory, whereas $m$ in dimensional regularisation was just an intermediate parameter that scheme.
I suspect that these two equations are related by the wave-function renormalization, $$ m_0^2=Z m^2 = (1+\text{const}\Lambda^2/m^2 + \ldots) m^2 $$ If I am correct, not much has improved with dimensional regularization. We've sort of hidden the fine-tuning in the wave-function renormalization.
You don't see the fine-tuning in dimensional regularization because you are working with a renormalized mass. The bare Lagrangian mass $m_0$ is the one being set at the high-scale by some physics we don't know about. So it's $m_0$ that we need to worry about being fine-tuned. With dimensional regularization, we see that $m$ isn't fine-tuned, but that isn't a big deal.
Have I misunderstood something? I feel like I am missing something. Can dimensional regularization solve the fine-tuning problem? Is dimensional regularization really special?
EDIT
I am not necessarily associating $\Lambda$ with a massive particle, just a massive scale at which $m_0$ is set to a finite value.
It seems to me that the dimensional regularisation cannot help me understand how $m_0$ runs, or the tuning associated with setting it at the high scale, especially as it obliterates information about the divergences. I have no idea how quickly to take the $\epsilon\to0$ limit.
I can do something like,
$$ m_0^2 = Z m^2 = ( 1 +\lambda/\epsilon) m^2\\ m_0^2(\epsilon_1) - m_0^2(\epsilon_2) = m^2 \lambda (1/\epsilon_1 - 1/\epsilon_2) $$ Now if I take $\epsilon_1$ somehow so that it corresponds to a low scale, and $\epsilon_2$ somehow corresponds to a high scale. $m_0^2(\epsilon_1) $ needs to be small for a light scalar. But then I need to fine tune the massive number on the right hand side with the bare mass at a high scale. The fine tuning is still there. Admittedly this is very informal because I have no idea how to really interpret $\epsilon$