To elaborate...
Rotary Encoders (like the CTS288) get used for things like volume up/down, brake bias forward/rearward, wing up/down, etc. Things where I just want "more" or "less". I don't care exactly how much I have, only that I want more/less to correct a handling issue.
Rotary Switches get used as selectors....fuel Map A, B, C, D. Selectors like that depend on the sim providing an absolute input control API. Eg, SetFuelMap. If the sim doesn't provide that API, then the switch won't work as desired.
I've only looked at the iRacing control API, because that's all I do. There aren't a ton of absolute control API options in iRacing...most of them are "increase/decrease" type of commands. So, encoders are generally more useful.
For Single encoder you can get the CTS288. With a V suffix (CTS288V) the shaft acts as a push-button...without the V (CTS288), there's no push-button.
Above I also linked a dual-axis encoder from propwashsim. This includes two encoders, an outer ring, and an inner ring...as well as a pushbutton. I use these for front/rear types of controls (swaybars, wings, etc).