Of course I am - but the second half is identical for the backward encoder - it also only has four inputs.
You said you would require more than four pan pot connections to an encoder. That could be said to be true but only if you choose to consider, for no apparent reason, the two encoders in the 4211 as a single encoder with 8 inputs!
No, I think not. The Discrete Module is not used to change the number of signals lines (it
is four) but to remove the phase changes added by the Position Encoder to "optimise" the performance of the SQ encoder:
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