Greg: Yes, it's quite common that servo drives take step/dir input. All I have does that. Internally it counts the desired-position value up/down based on step/dir. This means the drive must do the torque, velocity and position loops computations internally. With a voltage input drive often doing just the first or the two first.
And the step/dir servo can take pulses at high speeds. If the motor is not able to follow, it will not loose the end position. It will just loose position on parts of it's journey there. Not like a real stepper where a lost step will never be regained. (Unless by chance it looses the same number of steps going in the other direction.)
Here is a simple approach to the main components, except step/dir input: http://elm-chan.org/works/smc/report_e.html