There's certainly a finite set of combinations but in order for you to create a segmented display that isn't just a dot matrix, you need to have few enough vari

There's certainly a finite set of combinations but in order for you to create a segmented display that isn't just a dot matrix, you need to have few enough variations that it can 1) actually encode all of the characters and their context-specific variations, 2) have segments that at least somewhat resemble the characters they are supposed to represent and 3) if they are overlapping must be able to to render all of the components of every letter distinctly. So If you have a line that you also want to be two or three dots and a hamza or some other diacritic, you need to break each segment down to the lowest common denominators. A 7-segment display works by turning on and off each of the segments in order to render a glyph that is supposed to represent English alphanumeric characters. It mostly accomplishes this, though just barely and honestly a lot of characters do not render well at all (like the lowercase "i"). How would you shape the segments in such a way that could accomplish at least that level of clarity in Arabic? I personally think that what you'd end up with would very closely resemble a dot matrix.