I have one almost the same from Rockler, and it makes pretty good signs. But the plastic letters can wear out ( operator stupidity ) when you touch them with the cutter. I have also seen problems with the clamping system, keeping the stencil aligned with the board. One screw-up, and you better find a new board.
All said, they work pretty well. I'll have to try the colored wood thing next time. Painting the letters with paint is a pain unless you run it thru the plainer after painting.
Final thought- How do you clamp a wide board like a sign to get a thin glue joint? Cauls??? Thanks.....