It sounds like you are very concerned with following error tracking, If I were as concerned as you seem, I would probably use a dual loop feedback with the rotary encoder feeding the servo drive and a linear scale reporting back to the motion controller. I haven't done this myself and probably never will since It isn't at all necessary for my tasks, but who knows. I may get bored and do it for grins someday. It does interest me so I have done much research on it in the past and LinuxCNC is definitely capable of this.