A clever idea but it would need either indexing holes and a pin in order to space the letters evenly or the top plate would have to be Acrylic in order to see where the next letter goes.
That might cause problems too unless the pins are spaced for each specific letter. I learned a few years ago that the standard spacing is adjusted that way to make the text LOOK even, even though the spacing is not.
From Microsoft Office:
"Kerning refers to the way spacing between two specific characters is adjusted. The idea is to give a better looking result by reducing the spacing between characters that fit together nicely (such as "A" and "V") and increasing the spacing between characters that don't."
Someone I consider a master woodworker once told me that a master woodworker is not someone who never makes mistakes. He is someone who is able to cover them up so that no one can tell.