Bu0836 has great cost/benefit (45$ with shipping).
8 (10 bits) analog axis
1 POV HAT - can be used as four buttons too
32 buttons or up to 16 encoders (each encoder use 2 buttons positions).
People generally frightened by the "matrix" thing. But is easy deal whit it, just put one diode in one terminal of every button.
For my purposes, I don't know what use I would have for Rotary Encoders. I'm not building a radio stack or an autopilot for FSX or anything similar.
In Il-2 (1946) you can use encoder - with dials - to:
Select next/previous beancon
Select next/previous AM radio station
Adjust, altitude, angle, speed, deviation in bombsight.
Rudder, elevator, aileron trim (but idealy is use analog axis with multi-turn pot's)