I'm not sure if it's particularly useful for a quantity solution, but to just experiment you could disassemble an ink-jet printer (often free from disgruntled owners or cheap at thrift shops, Goodwill stores, computer recyclers, etc) Usually the carriage has a linear encoder, and the paper drive has a rotary encoder attached to a drive roller. The paper encoder may use linear rather than digital outputs from the sensor - that's how you get 9600 dpi resolution from an encoder with fewer lines per inch. You could square up the edges with comparators. Both are quadrature encoders since bidirectional motion with fast turnaround is needed. Some printers have additional motors for a document feeder, maybe a service station (where the ink cartridges go for storage, cleaning, etc) and other functions. These tend to need less resolution, but may have encoders built right onto the motor. May or may not be quadrature encoders. Most printers use DC motors, with PWM drive controlled by servo algorithms run by the processor that runs the printer. Outputs to the motors are often H-bridges run from a higher voltage - do be careful.
SInce printers are produced by the millions, small DC motors with attached encoders ought to be cheap if you can locate the right supplier.
Once you hack a servo for continuous rotation (typical in many two drive wheel robots) it is difficult if not impossible to achieve accurate speed & position control without feedback. Just about the same problem you have with a DC motor. I have used some of the Nubotics Wheel Watcher encoder kits years ago and wondered about any other recent low-cost options that might be new. The nubotics kits are available in the US from www.acroname.com and in the UK from www.totalrobots.com. They just attach to the top of a standard RC servo or some geared DC motors and work well, but wind up costing as much as the typical servo or geared DC motor. That may still be the best option. If anyone knows of other options let me know. I need quite a few, so I am really looking for an easy off-the-shelf kit solution. I have seen a few servos that have this built-in, but they are very expensive. Some images of the Nubotics encoders are shown below. The last one is magnetic and replaces the pot inside the servo and can add I2C feedback and servo control. It is new and I have not used it.