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The main problem is that the libgnomecanvas text object does not handle custom spacing. Fundamentally, Xournal is not a word processor - it's mostly designed for tablet PC users to write with a pen. The text tool is useful and I certain appreciate the needs of people who use Xournal to add text onto a PDF file, however it will necessarily remain somewhat rudimentary. (There should exist other tools more specifically suited to adding text onto PDF files. If there aren't, this is a call for someone else to work on it). So, anyway, if there's an easy way to arrange stretching without turning xournal into a word processor, I'm all happy to do that, but as far as I know it's not possible.

Denis