I've seen a laser used to cut very complicated patterns in leather. But there's probably some variation in how well it works with various types and thicknesses of material. I'd suggest working up a sample project in a material you're likely to be using a lot, and sending it to a laser-cutter to see how well it works. If you can watch (and sniff around) while it's happening, you'll get a better idea of how bad the fumes are, and what's done to exhaust them.