Hi Tim :)
If you are willing to improve it, and stock it in shop, I think everyone would profit - but please do not invest too much time or money - maybe nobody, but a few LED fanatics will be interested in this board? :-)
Here is a personal wishlist, everyone might disagree, but I still have that wish for a FS1R controller and that synth has more controllable functions than an A380 airbus and thus needs a few encoders :):
* If you ask me, I think for normal "MIDIbox" use, it is totally sufficient to have one lit LED per encoder, so the aggregated current consumption should not be so high? We would have only 16 LEDs on permanently, driven by four shift registers, flicker can surely be addressed by hacking the update routine speed, as Duggle said, but it should better be tested before...
* 16 LEDs per wheel and a 16x16 LED matrix is a great design choice, as is the 8x2 encoder layout on the board. If you reduce the number of encoders per "modular board", you also have to reduce the LED matrix size and need more shift registers for the same encoder amount... also limiting the maximum encoder amount of the controller (even with good termination).
* Regarding space - i´d say as small as possible with through-hole LEDs and common "pushable" encoders, don´t know what is possible with routing...
* Shift registers and other components should be on the backside, if possible, so that the frontside is clean and can be used as a surface just as the fine MBSEQV4L, white PCB color preferred :).
* SMD components for shift registers and diodes would be fine.
* Also, an encoder "push acceleration"-bus would be really nice, if a pushable encoder is pressed down, it should just short the bus, so that a global "FAST" feature can be used - it is really nice for intuitive encoder use... Just two pins to be forwarded to the neighboring boards...
Many greets,
Peter