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Espruino is a JavaScript interpreter for low-power Microcontrollers. This site is both a support community for Espruino and a place to share what you are working on.
@Gordon
They are making normal encoders into I2C ones with a microcontroller. Unfortunately they're not selling all-in-one I2C encoders yet - although with 4 wires needed it's not making wiring easier ;)
OneWire would have been very cool though - and you could have chained them then.
... having said that I'm sure I've seen 2/3 axis magnetometers (which are already I2C) used as rotation encoders, possibly in a self-contained module.