Good question.

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any scheme will do, but yes i think it's a great way to do it, better than just a linear set, and more visual, and lets you slim down your symbol set a lot further, probably you can do 8 symbols on an 8x8 grid and actually get the equivalent of a 24 word key

Just using 2 of these 4x4 works as well and is easier to display/handle on mobile.

i think you'll come up with a scheme that gets a really good bit size if you try