I have a "bootleg" hardrive shifter/ignition key/3 pedal set. The shifter definately has 4 microswiches. There is no obvious "5th" position although you can leave the shifter in the middle not touching any switches.
As it was sold to me as bootleg, it may be that the original was analogue. I played hard drivin plently but can not for the life of remember how the gear switching felt. To be honest I would be surprised if it was analogue - does not make sense for gears surely? All 3 pedals are analogue pots though.
FWIW, Hard Drivin had analog or microswitch shifters, depending on which cab design.
The original full size and "deluxe" cabs used analog joysticks with an H restrictor.
The "compact" cabs used the more common digital, 4 switch, shifters.
IIRC, mame emulates both these correctly, depending which ROM you play.
As for why an analog shifter for digital gears, well, act-labs GS shifter is an analog joystick with modular different shaped restrictors. This way, the driver can translate the analog inputs to 2, 3, 4, 5, 6 gears without needing to add/remove/move swtiches.
But I think the real reason analog is better is that real physical gears are analog, and you can have the shfter in wrong positions that will grind your car's gears. Not sure if HD simulated
that, but it was an arcade simulator, not just an arcade game.
