A 1-inch diameter hall-effect jog dial with 5 switches and 12 detents per continuous rotation. Outputs two square waves whose phase indicates rotation direction. Option for led illumination. Mouser carries them and mating connector for around $12.
Omron Jog Dial B5V-1422
would like to see them at sf too
I believe Digi-Key also stocks these, as well as the FPC connector needed. As an alternative, there is the Avago AMRX series which offers 45 cpr instead of the 12 from the Omron. That 45 cpr sounds a bit better to me, but I guess it depends on the app.