You will likely be ok with the 500 line encoders although from personal experience I have found the higher the resolution of the encoders the tighter tuning I can get. The motors I have use Sine/Cosine smart encoders and I can interpolate them via the servo drive, I found as I increased the interpolation the easier it was to tune.
As said however the 500 line ones will likely suffice and if you want then later on you could swap out.
I would go with the MPG module at least, the motion from the MPG connected via the IP-A when using the MPG module is far superior to that of using Machs own MPG controls. It works like Industrial MPGs where you have x1 x10 x100 (or x10 x100 x1000) and it is very accurate each step where Mach has Velocity mode which is just an approximation per click and if you put into multistep you can get accurate steps per click but motion is jerky.
I personally do not like hand held pendants so I just use the MPG module and fit buttons, rotary switches, pots and MPG to my control panel and the MPG module makes that all work easily and nicely

Hood