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I seriously considered putting encoders and a Nexus on mine.. I still might one day, but there's a significant cost involved.
Ben the setting circle approach can be as simple as blu-tacking a laminated printed circle on the base of your mount (assuming you have a dob) to read the compass bearing. Altitude is read by a $35 digital gauge which are accurate to a fraction of a degree. And as you found, looking at pitch black skies really needs some sort of illuminated pointer like an RDF or telrad.
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