Hi Chris,
To encode or not...
I currently use a Planewave Instruments CDK20 telescope. It started its life on a Paramount ME, then later I upgraded the mount to a PWI Ascension 200HR (the PME was basically at or beyond it's weight limit and I felt performance was compromised). The A200HR comes standard with optical encoders (0.07" per tick). The only encoders worth talking about for improved tracking etc are the high resolution variety (14M ticks) , the 8K tick encoders are only good for visual.
For a short time PWI sold an A200 with no encoders, but I suspect they found machining the gears to the accuracy required too expensive/difficult and just not worth it considering the encoders basically do a better job at keeping the tracking smooth and have other benefits. Since the mount is very large the extra cost of the encoders (factory installed only) is reasonable (IIRC the diff was ~3K at the time, the A200HR lists for ~23K).
The PME with a very dense Tpoint model was supposed to allow for unguided imaging. The A200HR with a quite sparse (35 stars) is supposed to allow for unguided imaging. I can verify that both these statements are true, but not under all conditions. When does it work? Well that is an impossible question to answer in a general sense. Imaging scale, exposure length and OTA rigidity all contribute. So if you knew exactly what camera/OTA would be on the mount, what type of targets you wish to acquire, and what your expectation level of the data quality was, then
maybe we could answer the question with some confidence!
In my case I am very picky about my data quality. I have generally very good seeing (FWHM~1.6" for 10-20 hr stacks) and a large imaging scale (0.5"/pix) with a f/6.8 telescope and I like to go after faint galaxies, hence long subs are standard (30min). Unguided for me would yield less than acceptable results with either mount.
But if I binned my images to 1"/pix and chased more nebulas, hence undersampled and 3-5 min subs, I think the A200HR would do OK. I regularly did collimation+ tiptilt adjustment for the OTA with 1 min unguided exposures, no problem. The PME in the same conditions would still struggle, a lighter OTA and coarser scale might do the trick, but without encoders you are relying on the PEC always working perfectly. The PEC can be good but still trails the real time (20Hz) adjustment an optical encoder brings.
If I was getting my dream mount I'd get the encoders ... wait I already did that!
Of course after my obs was finished PWI go and release the CDK700, 700mm aperture, encoders and direct drive in AltAz config, luckily I can't afford it

and so I'm happy with what I've got.
I know I might have muddied the waters more, but it is a complex question!
Best,
EB