For the record... the "no no" and "toxic" thing about cutting PVC is that it releases Chlorine gas (C stands for Chloride). This stuff makes you cough up blood by irritating your lungs, as was demonstrated in wartime. To the machine, yes, it just corrodes the metal components in the machine much faster than usual. You also don't get a clean finish trying to cut vinyl anyway. I did a spot test once, and no good.
A small format laser (like we are talking about here), is not so great for dimensional lettering... it's more for intricate and small items. Think awards, promotional items, industrial marking applications and the such.
Cut thin woods, acrylic, paper, card... mark acrylic, stainless, wood, etc etc.
The laser's strenght over a router, hands down, is the level of intricacy you can achieve, and the elimination of any internal/external radius on corners and the such. You also don't need to worry about tool costs and sharpening (obviously).
You tube some laser stuff and you'll get some ideas of what it can do.
As it stands I currently have around 10 years overall experience working on small format co2 lasers. A trotec, and a universal. Both great machines. Currently running a small universal.
I also have experience running computerised engraving machines prior to that (which I don't use anymore because of the laser), and prior to that I used to pantograph a little, but in my 2nd or so year of learning, things started moving to computer. The last time I ran a decent job on a panto was in 2007 or 8 I think... and I no longer have it
Anyway, any questions feel free to ask or PM.
PS, for big fat chunky thick letters using cheap materials, definitely a router is better like the guy above said