I realize this is crazy old, but I ran across this today and it’s brilliant. I do exactly your method - but instead of dashes I choose this dot:
Then follow your steps 4. through 6.
Then select the dots and do an outset
You now have little circles which are perfect for sewing in leather!
I have my outsets set to .007" so I did it twice to get these .06" circles which are just the right size.
Thank you for leading me down the path!