We put the decals on after painting but before clear coating. First spray a couple coats of clear around the letters but not on them and then spray across the entire surface with a couple coats. Once dry the area is color sanded more on top of the letters till they are level with the area around them. This gives a "no bump" feel when fingers are runs across the letters and being buried in clear they never fade or curl at the edges.
That's very clever! Apparently the clearcoat doesn't lift the adhesive on the decals?
Vehicle sign shops have lots of experience installing vinyl graphics. No doubt they could install your lettering perfectly straight.