My guess is that the creepiness comes from the fractal-like nature of these letters -- taking the thing that makes the letter unique and overiterating it. Since

My guess is that the creepiness comes from the fractal-like nature of these letters -- taking the thing that makes the letter unique and overiterating it. Since nature constructs itself in fractal geometry, the letters are stuck in a half-baked transition from symbolic to organic, and our expectations are left bouncing between the two. If you could put the word "caterpillar" in a cocoon and hatch a real butterfly from it, these letters are what it would look like if someone cut the cocoon open too early.