I'd have to guess what you really want to achieve here.
But if you want a Control with formatted text (FT) and really really really don't want a RichTextBox, I think you shouldn't create a new, embedded TextBox for every piece of FT.
Instead you should write the FT yourself, maybe on a panel with DrawString and use only one Textbox for text entry. Interesting project, really, once one accepts the challenge. Of course you must think your format through and also consider all sorts of interface questions..
Last week I have avoided a RTF for a tiny help system by using a ListView; it formats by line only, using the first character to indicate the format from a list of a dozen or so.. Works fine, but only one format per line.