Some thoughts:
1: dang! I need to try that!
2: I got a Slot Machine, and hated trying to make slots freehand. So I strapped it down to a board. Now I have a handful of blocks; I put a block on the board, and the surface to be slotted on the block, then slide it into the Slot Machine blade. It's still not perfect, but it's a great deal better than what I was doing before.
3: If you run the grain of the 1/32" chordwise, then you'll have a surface made out of balsa plywood. It'll probably be more warp resistance, and will certainly be less prone to splitting on less-than-perfect landings.
4: I've seen this done on TE stock, too: to make a 3/8" x 1/4" trailing edge with slots, use two 3/8" x 1/8" pieces. Sand half-slots into each piece, glue, and voila -- slotted TE stock.
5: For making plywood out of balsa, I use Ambroid. You need to do the whole double-glue thing, but the resulting assembly is strong, light, and smells slightly minty.
6: When I hinge with plastic hinges, I always use a long wire hinge pin. I learned it from reading Paul Walker's build article in Flying Models. While he uses it to get to the World's more easily, I use it because after severely damaging a plane, it's a lot easier to fix if I can pull the surfaces off just by sliding out a wire.