Four drawbacks: it doesnt read the backlask, the screw error, manual motion, or lost steps right. If you fitted one with an encoder, you could take out the last two problems for a small outlay.
There are cheap quadrature counter modules out there, in regular, waterproof, and instrinsically safe (not going to cause an explosion). I've used all three for regular and backup depth readouts on machines from 10 to 160,000 pounds.
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