No.. all of the letters in hello are converted to ascii, indexed from 1 and then output in a stream of pairs.
[unpack] receives all of the ascii values one after the other.
What may be confusing is that while [print] shows all of the pairs that were sent, a message box or number box will only display the last pair (in this case 111 - letter O). That's because the initial letter values are overwritten by subsequent letter values.
Hmmm I don't quite understand what you are asking. Values sent one after the other already are 'unpacked'. [listfunnel] indexes the values of a list and outputs each position/character one pair at a time.
You can use [routepass 1 2 3 4 5] which will output each ascii pair from a separate outlet. Then you can process each letter independently.
I messed around with your patch. You might find some changes useful. Consider using a single coll to manage letter color data. It's easier than dozens of [select] objects.