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OTOH, you have English and German and others that frequently use compound words, and the use of spaces becomes really important to understanding the writing.Schleifmaschinenverleih would like to have a word with you.
This is parsed as Schleif-Maschinen-Verleih. Verleih means a rental company. The middle one is machine, and the first one I find both sanding and whetting as translations, not sure which one it is. So you can rent sanding and/or whetting machines there.
There are cases where it's ambiguous but for the most part the lack of spaces in compound nouns in German is not an issue.
A somewhat infamous example is Rohrohrzucker which should be parsed as Roh-Rohr-Zucker (raw cane sugar), but Rohr-Ohr-Zucker is also possible (pipe ear sugar). It's pretty clear when it happens that you got the wrong parsing but it takes a while to figure out what the right parsing is :-)
As far as speaking is concerned: I guess the extra spaces in English don't necessarily translate to pauses, do they? Is plugin pronounced differently from plug-in due to the hyphen?