Being able to run an even just very simple digital controller allows things like severely dropping negative feedback gain at a resonance frequency of the larger system. And so much more.
There are lots of alternative sensors, but most are bigger, heavier, or more expensive. If 1% precision is good enough, pots are fine. The next step up is Dynamixel servos, which have a nice daisy-chain digital interface, encoders, about the same form factor as toy-type servos, at about 10x the price.[1]
One of my most amusing applications was the client who put an R/C servo on the choke cable of a carbureted generator motor instead of spending more money to buy the fuel-injected version. Servo cost about $5 and we were already measuring air temperature and had a PWM output available.