Given, I'd never buy it, but a fully enclosed, pre-wired and pre labeled encoder 'box' that allows people to do a one-stop-purchase and just hook up their controls has some merit, I think. There is no buying rolls of wire from RadioShack, no soldering, no separating all those tiny wires in an IDE cable, no QD orders from Peale, no crimping etc etc etc.
Basically been done already with the Mini-PAC from UltiMarc -
http://www.ultimarc.com/minipac.html (except Andy didn't drop it in a project box, but how hard could that be. And from what I have mostly read on the boards, the $29 basic board has been popular, but the Mini-Pac with harness has not.
Also, keep in mind that you are bound to either have some wires too long or too short with this method.
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While this one may or may not be a basic keyboard hack (with any associated problems), I say that the idea is a good one.
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You are missing two key items -
Advanced features - Things like shifted inputs, programmability, USB or PS/2 connectivity, pass-thru connections, screw terminals, etc.
Support - If I buy from RandyT or Andy, I can be pretty sure that in six months, I can get a replacement if it breaks, or that they will make every attempt to make it right or troubleshoot it if I have a problem initially. If I buy from Kev8556 on E-bay . . . (not that he won't support his products, but that is an unknown. . .)