From my understanding of the datasheet, the switches are only 'on during changeover' (quoted from the ds)... I read that as CW switch will be on only when turned from CCW to CW and vice versa... So it would work as follows (pulses from switch are in parenthesis):
I am turning the knob CCW (no pulse)
I then turn the knob CW (CW switch pulses once)
I keep turning CW (no pulse)
I turn the knob CCW (CCW switch pulses once)
I keep turning CCW (no pulse)
I may be mis-understanding the datasheet though, I would research more about them before buying a ton of them... I didn't even know such a device existed and if it works like you say, that would be amazing. Dealing with grey code encoders can be a bit of a PITA....
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