There may be an advantage to going quite high on the encoder counts and using electronic gearing when comparing a max input step/dir like your drives have. Waht I am meaning is really you have a min resolution you can really get due to the limitation so going with a higher encoder count and using a higher electronic gearing would get you the same resolution. The advantage may be is with the drive itself as it can then read the ungeared encoder input and thus compensate better within its tuning thus reducing the error.
The drives I use would be expensive if bought new, the 22KW one I have on the lathes spindle comes in at around £4700 ($7500 ? ) but I paid £180 for it and also picked a spare up for the same price and both were new, well one had been powered up for 15 mins, I think, it said in the drives software.
They are Allen Bradley DSD AC drives and I use various Allen Bradley AC servos. As said the most I have paid is £180 for a drive and the most I have paid is £250 for new 12.5KW motor that I use on the lathes spindle, it too has a retail of about the £4500 mark, isn't ebay wonderful

Hood