On first thought, I really like the idea; it allows to have more compact backups and even combine two backups on one screw.
However, I personally always value legibility over size / anything else. This also applies to stuff like custom crypto (shuffling words, ...) or super strong passphrases. That's because I am convinced the risk of losing funds due to unrecoverable backups is much higher than losing funds by being attacked.
In this context, I think paying a few cents more and getting enough hardware to write down all words in full, is definitely going to be worth it.

For instance, you will need to either number (but that takes up more space) every 4-letter 'word-part' or you'll have to remember / mark somehow for each washer which is the first, second, third and fourth word. If you do it like myself or fillippone, you will have one word per side and one number per side, so it's easy and clear to read.

Keep in mind that these backups are supposed to withstand extreme conditions, under which a letter may become indecipherable. In such a situation, you'll be happy that you wrote down more than the minimum required 4 letters per word.