yes and by god you should be doing it!!! there's no point trying to run the sim on those blocks it will take forever and it's completley unecessary. I would do the lettering in textures as was suggested but if you want it as geo then ok.Isn't there a way to run the dynamics on low res geometry then bake the animation to a high res version? I think I read this somewhere, but I haven't tried it myself.
That said, you're scene isn't that complex and the geometry is too heavy, so I would think you should be able to do this.