I think it's a lovely idea and I'd be happy to receive a favour like this.
I had a heart shaped shortbread favour once, which was tightly wrapped in plastic wrapping, but I expect that these were bought in. If you're not using them as place names, you could get those cellophane bags, some come with a square of cardboard at the bottom to stand them up, and tie a pretty ribbon around it. I think it would be hard to see the iced name on it, though, if you did it this way.
I'm no expert on icing, but I think you'd just need to practice, practice, practice!