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Short version = No.
Long version, they do drift a lot with temp changes, material type, and material size = in this case very important.
I would venture a guess that optical sensors would be much better, or combination of the two.
The combination would be to use the proximity one for fast approach while the optical would do the slow precision part. Also could be used as a safety, say if the prox is active and Z moves over 3mm with no signal, stop and show an error ... like sensor is dirty... or tool is invisible

I have a jog pendant with an MPG. A selector switch tells LCNC what the MPG is supposed to adjust, I have regular axes, feed override and spindle override set up there.
See : pico-systems.com/pendant.html
for more info, schematics, etc.
This is used with my Pico Systems interface boards, but should be easy to set up with Mesa as well.
Jon

Typically the Realtek MAC requires the DKMS driver for usable latency.

Not sure which thread is the best on this but searching the forum for "DKMS"
will find a thread that shows the Realtek DKMS driver installation details.

You are not guaranteed to see any change in the Z signal
as its a short pulse and quite hard to catch at the 1 KHz servo thread.
(especially with higher resolution scales)

This is why the actual index event is captured in hardware.

The index (Z) signal is only provided as a hal signal for debugging
or using it as a GP input. It's normally not of any other use.

If index enable goes false on an index event, the index was detected.
 

If you have a Mesa setup, you could add a 7I73 that will support up to 4
MPG encoders (plus buttons/keypad/etc) and unlike the Arduino, it's
real-time.