This is possible with encoders because they work like a series of switches. Each turn = 24-32 switches or steps. I'm not sure how this all works with 360° pots.
14-bit values are nice within a computer ecosystem but when controllers use analog controls (pots, faders), they are often using 8-10bit ADC (which is then muxed, at a slower sample rate) so there isn't much point to transmitting 14-bit values, unless the destination device requires it (as is the case with Pitch Bend data). That isn't always the case, I have seen controllers which have 16-bit ADC for some controls but that's not common. Also remember that MIDI is serial and you are transmitting twice as much data when using 14-bit values.
*Realistically more more like 1-10 and 127-118. Depends on the acceleration curve.
Edit: Sorry, this isn't a very technical description of how all this stuff works. I'm not an engineer, so my words are those of a layman.



