I am beginning to research converting my grizzly 1006 benchtop mill to CNC, It's in good shape and am planning to convert it.

Is it possible to use the cheap chinese encoders for position feedback on a CNC mill? Like theseT23013 24" Remote Digital Readout, Inch/Metric/Fraction

I have used these for a few different projects and decoding them is quite simple.
Yuriy's Toys: Reading Gtizzly iGaging Digital Scales with Arduino
21 Bit Protocol Scales | shumatech.com

The are accurate up to .001". I have had some of these on my manual mill and they are still accurate.

I understand eliminating backlash is for more than just position accuracy, but it seems like these could solve the accuracy issue.

If someone has done it already could someone point me to a link where it's been done? After hours of searching I still can't find it.