I gather that they have compensated for backlash to a certain extent, I don't see a lot of comments from people who actually use it saying that it's terrible. However, It might be that the folks that buy it don't have that great a demand for accuracy.
The position calculation was a fairly surprising omission. They could have the thing sync to your phone with bluetooth and implement all that crap in an app if they didn't want to build a more robust display. Given the cost of the unit and the how cheap displays are I think this was a silly omission; the Sherline DRO is really weak in the bang for buck department.