Does this sound crazy?

I think my Harbor Freight bench top drill press could get it done. Setting up the fixture to hold the sight would be a real PITA though.
 
Is it mechanically possible?
Yes.

Is it legal?
No.

Is there anything else that might factor into the project's success/failure.
Yes.

The vials don't emit light evenly. You'd need to check where the primary emission was so you didn't do all that work just to find out you installed rods lengthways but they don't emit from the ends, but the sides.

Not all colors are evenly bright.

Research beyond the obvious will help you do it well if you decide (which I think you have anyway) the best type, color, shape & size of any vials you attempt to install.
 
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