Wondering if there is an easy way to create an effect (like what I have attached), but not using a word cloud generator, as the desired effect is not acheived, as I need to scatter the letters more. And I want it to be square (so no overlapping on sides, only on the top - exactly like the image attached).
You need to look for nesting software. Inside Illustrator there is no way. The plugin ColliderScribe somewhat does this, but not automatically. Basically this is somewhat advanced.
Nesting when it comes to the digital world implies stuffing "something" inside "something else" (i.g. think of those Russian stacking dolls, in html it'd be like how <html> </html> has all the website code nested inside of it).
Simply searching "nesting software" brings up a ton of engineering software that isn't what you're looking for, search "nesting software word cloud."
Alternatively, you can write/find a script that does a word count and gives you totals. Find the mean, mode, standard deviation and then adjusting font size using what you found. Using a program to automatically do all this for you probably won't give you the look you want.
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