Woodguy7, you have a PM, sir.
Mattfc, I actually know two joinery companies locally who have used that technique but machined the bits themselves, apparently some slight twist is do-able though they say the downside is the multiple glue lines and time to clean up. The glue is harder than the wood to scrape/sand.
On another part of the job I made the internal and external mouldings by laminating up approx 2mm thick veneers for this:
The top moulding was this section,
Even though the cascamite had been dyed to prevent white glue lines the lines are still evident close up (the sapwood, light coloured walnut is covered by marble flooring)
As the sections were spindle moulded, after glue up, using jigs and a ring fence very little sanding was required.
The only issue I had with this was the plys slipping past each other across both length (which you need) and width......which in that handrail example the widthways slip is held in check. ;D
An interesting note is: in George Ellis' Modern Practical Stairbuilding & Handrailing, a method of using multiple dowel "rods" to form a continuous handrail is shown [eek] can you imagine the work in that? Especially as it (the example given) had been made in the late 1700's or very early 1800's!
Rob.