MPG to behave as a real handwheel

I have tried several times to use the search function but it generates only a blank page for some reason so please point me in the right direction if there is a similar thread.

I wonder if LinuxCNC is able to make an MGP or encoder fed handwheel behave as it would on a manual lathe or mill?
For example in Mach3 it only takes 0.01mm or so for each pulse which gives a choppy motion, or it can operate in velocity mode but then it just moves faster the faste you turn the wheel but not relative to the actual movement of the wheel.
I think there would be a lot of people interrested in having there lathe cnc customized but also still be able to jog it as it was still manual.
What do you think?

You can set the increments to whatever you like in linuxcnc. Also often a filter component is added to smooth the pulses.