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I strongly doubt it... How would they know where the break is? At best, they'd have to guess using a dictionary, but the number of combinations would be daunting.
You said "i know for a fact that google can read these as seperate words..."
Can you show us an example of where google will treat discountwidgets the same way as discount-widgets?
If it did - wouldn't the search therefore be the same?
If your assertion is correct - wouldn't there be identical results for these 2 searches?
It doesn't treat them the same!