Only issue I can see with scrambling is someone reversing it and thus getting whatever books users post for free.
I don't know if it would really be worth their time and energy given the general ease of pirating digital content, but it's an objection I can see the moderators raising. Where as replacing the text of a book with a static block would be impossible to reverse, if you're worried about it not representing the text of the book maybe just generate word lists so there are a few words of each size to throw in the place of the text of the book. Even if the end user knows the entire word list, they'd have a monumental time trying to reconstruct the book from this since 'read' and 'said' could, in theory, both be replaced by 'boat'.
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