first of all my last post seems harsh, it was not intended to be

in most applications hall effects are used as switches, and thus either a schmitt trigger circuit is added or build-in
with the use of hall effect basically if it moves (as in cyclic) the electronics look at the flank of the signal, if it is not cyclic (like proximity) you look at a "arbitrary" level
and decide stop/move
generally in the electronics world , if you can reduce a real world analog signal into electronic timing signal it is always easier to measure/reproduce then a analog signal level
in order for the this encoder to work (and I was a factor of 10 out) it will have to interpolate to quite a small degree
so take the 50.000 CPR , that's 0.0072 degrees per click, so the positional change of any teeth is minute the change in distance change be teen the sensor and a teeth is even less, The hall effect sensor must thus be able to measure sub 0.001mm distance changes and translate in a proportional voltage level change.
this then has to be captured by the electronics, which if substantially below mV becomes hard to reproduce
this (analog 2 digital) is a large part of my dayjob and it gives me and my co-workers grey hears .....

Still these motors are cool .....intended
JB