linuxcnc expects positional feedback (and from that can calculate approximate velocity or some of the cards actually calculate the velocity)
I guess to be truly accurate linuxcnc needs both position and velocity - it just calculate velocity from position.
Trying to calculate accurate position from approximate velocity and time seems about impossible.
Well if the drive belt breaks then the axis can't really crash (it can't move) so thats not that bad.
The motor would spin at maximum.
worse is when the feedback device fails - but it doesn't matter what type of feedback device, if it fails the motor is going to try to move faster.
It would seem success of tuning with scales would depend on how much lost motion (backlash) between motor and axis and the resolution of the scales.
Typically you get way more resolution with rotary encoders because of the gearing and leadscrew. your interpolator helps here though I believe the 602 is usually 5x (though it can be 1x - it should say on the box)
you say you are ready to take the necessary measures to make this work you have three practical options that I see.
buy servo drives that use tach feedback and use the scales for positional feedback ( you won't use the 7i29 to drive the motors )
buy some encoders and add them either to the motor or the leadscrew. (this is the probably best option)
use the scales as feedback (probably hard to tune right)
And thats the end of my opinion !
Hopefully I haven't told you any big lies
Chris M