It seems to be something more funny than useful. These "words" don't add anything to simply using Base58 (and perhaps adding some huffman coding upon it to make it auto-error correcting). Two examples:

FEED and FEET. Their "distance" is one character (D and T) AND they have a similar sound (D and T are both dental consonants).
DIME and DINE. The only difference is a single segment. Are you sure an OCR will distinguish between them?

Another problem: the length of each "symbol" is variable (A, AD, ADA are three legal symbols), so the space is an important separator. ADADAD could be AD AD AD or ADA DAD.