Not to argue the point, because I am, by no means, an expert.
FontLab. the program used by most foundrys, sets kerning exactly the same
way for one as it does for the other. Could be there is something I am
missing. OpenType is a superior format for many reasons. For purposes of
cut vinyl, The vector is the same, except for the number of nodes.
I am fairly new to FontLab but, From what I know, all fonts are first created
in a FontLab file,(.vfb). From there they can be generated to Type1 (.pfb),
True Type (.ttf) or OpenType(.otf). The only other font software I am familiar
with is The Font Creator Program, which only gererates TTF. Auto kerning is
just a matter of entering the number of vertical coordinates you want between
two specific glyphs.