"So either I need a way to create arrays ..."
Best avoided:
"...and not cell array per loop iteration"
That would be a perfectly good approach.
"I need a way to plot cell arrays better"
The CELLPLOT documentation makes it clear that it just plots a graphical representation of the shapes and types of data in the cell array. It does not plot data values. But you do not explain what you want, so we will have to guess that you want to plot data values.
Note that you can replace parentheses indexing inside CELL2MAT:
Word1 = cell2mat(word(1));
with basic and more efficient curly-brace indexing:
Word1 = word{1};
