It works perfectly... providing that you choose to save the previous state so re entry places you at the position you exited at. Positional feedback must be from the visual display and not the knob. You don't read the knob you use the knob to read... Regardless of what the knob really is, rotary encoder, pot or rotary switch. Using a rotary encoder is probably the best move as it doesn't have the 270 deg rotational limitation of a pot or the mechanical stops that most rotary switches do.
{Edit RKJ}
Bob