backlash, variable friction, motor power variation due to voltage, belt stretch, most flexions of the frame — all of that should just be 'external disturbances' that the negative feedback system automatically corrects. only the position feedback itself (and the time of actuation of the inkjets) has to be precise, that's the magic of negative feedback
as for the optical strips and encoders, i figured that a 600dpi laser printer printing on laser printer transparency film should be able to print a light/dark transition every 42μm, though it might take some fiddling to get that to actually work. supposedly 1200×1200 dpi laser printers also exist on the market for US$300. the standard way inkjet printers do this seems to be with a slit that's only slightly wider than the size of a single stripe, but a second transparency with the same 50% black pattern would also work, producing a moiré pattern (though with a viewing angle of only 25° or so due to the thicknesses of the transparent films). let me know if this is unclear, i'll make an animation or something
with a quadrature cycle (as the inkjet printer sensors seem to use, according to the datasheets i've managed to find) every 84μm you get a full cycle, so you get a transition every 21μm and you know your position ±10.5μm. that's half a thou, good enough for machining a piston
if you don't truncate the brightness to one bit, though, you can measure the phase within the cycle to probably within a tenth of a cycle, so you get ±4μm
as for who did the mechanical engineering, i suspect that it's something like ten people in the world, half of them retired. dissecting printers from different decades i see an astounding degree of similarity from one decade to the next