I too have been wanting to get my old Enco/RF-30 DRO'd on the X&Y.
I put one of the magnetic scales like you are talking about Paul on the Z and it was a vast improvement. I had to custom cut the scale to fit and although scary, it was a piece o' cake and looks good after I made a cover to mount it to.
I go back and forth with a glass setup as right now there is a XY complete for like $270 w/shipping from China off eBay. But for my application I think that big head would be in the way and the scales kinda bulky on my benchtop rig. I have to admit too it seems like a diamond necklace on a pig as that's almost what I paid for the old mill/drill
I'm seriously considering the bluDRO setup metalworker's buddy came up with. Seems like a cool little setup. Don't know that it has all the fancy functions the big glass DRO's have but I'm not sure I'll ever use it. Just a thought.

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