Yes, it is an encoder. It is still a high low voltage that is being output from a sensor and the high low is being counted. My basic point was that all these sensors come down to volt/amp outputs and they aren't being measured in "mph" or "miles".
I'm amazed at how many people did not know that Speedometers are typically set to read a higher speed than the car is actually going. This has been true as long as I can remember. The Garmin may not be that accurated either. The only way to get an accurate test is a timed run over a precisely measured route, then do the math.
Please give us a cite that shows Prius using an encoder instead of a simple pulse counter. An encoder would be overkill for no good reason.
I'm using encoder generically. Pulse counter is a better term. My point remains that a sensor is sending a signal that a computer is converting to a unit of measure that people can rationalize.
I could have been more clear in my first post saying that it doesn't output voltage the same way a thermocouple would send x volts for y degrees in temp. You are also correct in that it doesn't work like a crank sensor where the ECU can tell the crank position by the length and pattern of the high low on the crank plate. It works just like a bike computer (the sensor detects the passing magnet that is mounted on the rim). That is basically the simplest form of an encoder. It isn't a multiple-bit encoder that can tell direction and angle within a single rotation or anything. When your measurement is in miles, you don't have a use for knowing within a few feet.