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It makes a lot of sense only in the context of CNC machining, where it saves a fair amount of man hours.
Using this method for the "hand builder" with routers and hand tools is much more complicated due to the difficulty of keeping templates and bodies perfectly aligned. The chances of altering binding thickness are great, and I am not sure there would be any time saved. In fact I think it would take more time than routing the channel and gluing a binding strip. A pretty straightforward operation.
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