So if your string is "abc", you'd follow the node for "a", then the one for "b", but _also_ the one for "c", at a cost of 1 (because dropping the "b" incurs an edit distance of 1).
It's worth noting that some standard libraries (Java's JDK for one [1]) will cache the value of String.GetHashCode(), meaning string lookup in a HashTable is constant time average (but O(n) worst-case due to collisions).
I'm not sure I see what you're driving at there. If you had a finite set of strings that you might have to compare, you could (for example) populate a graph or something with weighted edges representing the Levenshtein distance between strings (vertices). Offhand, it seems like your search could basically use a hash table to find the position of the vertex representing your string on an already-populated adjacency list.
It'd be big, but in reality you'd probably only populate the edges with especially high or low weights, depending on the application?
Building the index, or adding to it, is not fast (without some heuristics applied) but searching using the index isn't bad.
But what if a search needs to be fast regardless of whether the string has been searched for before?
I remember some discussion of this in previous HN threads but I don't know what it was about...
Besides, related to this, does anybody know of a good Javascript implementation of a 3-way merge of strings, and perhaps also of JSON-like structures?