but there is no difference between a keyboard hack and a keyboard encoder (other than performance) - they are both keyboards without keys.
This is not correct.
Both keyboards and encoders designed for arcade controls have both an
input and an
output stage. The output stage of both are pretty much the same, with the speed advantage to the encoder. However, the input stage is very different (at least on a good encoder.)
The keyboard hack is matrixed, will have blocking and / or ghosting issues and possibly simultaneous keypress limitations.
A good encoder will have direct or multiplexed inputs, which are
very different from the matrixed ones. As a result, they won't have the problems associated with matrixed inputs.
Some hardware, like keypads, will
require matrixed inputs to be used properly, or will at minimum require modification to be used with an encoder. So it is very important to understand the requirements of the device you are trying to interface before deciding on the best approach to take.
RandyT