Hi,
there's a workaround: If you've got NeoOffice (Openoffice), you can convert Fonts into paths which makes them squash-able 🙂 There are even some real fancy 3D Font Effects if you convert them into 3D.
It's a little tricky, but may work for you. Once upon a time I used Openoffice all the time on the PC, but now i love the ease of use of Pages. But for some tasks, one has to get back to the roots. And sometimes, the roots are better 🙂