They actually
scan to the upper left corner of each character, then
sweep out the 5x7 dot matrix for that character, before adjusting the
x,y deflection to the upper left corner of the next character.
I seem to recall the DEC VT11 (and thus GT40) did something similar. When
it displayed a character it scanned a little raster at the appropriate
place on the screen and used a normal dot-matrix character generator to
turn the beam on and off.
The Tektronix 4052 and 4006 (and presumaby 4051 and 4012) do this.
These machines all have storage-tube vector displays, but when you want
to display text, scan a little dot matrix of the character. The 4052 at
least can put this little dot matrix at any addressable point on the
screen, not limited by the character block spacing or even (AFAIK) the
dot matrix spacing.
(The 4014 and 4054, iirc, drew the characters in a line draw font, which
meant they could be scrolled or rotated. I don't have either... yet)
Philip.