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How about saddle stitching
We produce some small books for golf courses called yardage books. They are usually about 4x7". We print the books 2up (various size signatures depending on the number of pages, usually 19x25) fold and saddle stitch them. The books are stitched and face trimed on the stitcher to 8x7" and then cut into 2 books. In the case of coupon books, you may only need one staple per book since the folded book is more secure. You can use various stocks, but they would have to be positioned in the stack to fold correctly. Of course you would also be limited to page counts divisable by 4.
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