El, it has to have some amount of cogging, otherwise there wouldn't be any need for the sensors. Every time it makes a correction it cogs and with an off center record it would be doing so continuously. Of course it is another matter whether this detracts from the sound.
I'm curious where the sensors are mounted in relation to the pivot point. Your spec of .05 degrees seems like an awfully low figure. With a 3 inch arm that would be about 70 microns at the stylus. I'm not saying it can't be done, but that does seem awfully low for a consumer table.
While I agree that it is an interesting exercise in engineering, one has to wonder why nobody builds such a system anymore. In the cost is no object world of high end audio things like stepper motors, hall effect sensors, and microprocessor controllers are dirt cheap. Perhaps it is a matter of perception given the amount of trashing they took early on.