That makes sense.  With my steppers if they ever stall they usually stall by a lot, so I keep things conservative.  It's usually because of junk on the ballscrew, hitting the limit without limit switches, rapids that are too fast, or just cutting too hard (happens on Z all the time while drilling).  I sort of assumed that servos would be able to read this error, even if it's like 1/2", and correct for it.  Good to know!
John