It uses a binary counter to set the temperature. I looked at doing it that way myself since it’s cheaper than the jumpers. Depending on the input filter, it might hold the setting for a couple of minutes, but it’s not going to hold it long enough for you to buy and install a battery.
If it’s hooked to a sensor separate from the gauge, you have a point. If it’s on the same sensor, you don’t. It’s pretty rare to see a DCC sensor or any other piece go bad, in fact on the few that I’ve seen, the wires were pulled out of the connector end, I’ve never seen a sensor that was actually bad. It’s housed in brass, then covered in neoprene, so shorting the wires is all but impossible Reading the temperature independent of the gauge is just common sense, that’s why it’s usually done that way. Reading from the sending unit is used to cut costs.
Most of the decent fans (Mark8, Taurus, SN95) draw 35-40A If you want to do it correctly with these fans, you’ll need a 75A relay (22.00), a separate sensor (15.00) and the controller. You’ll still have a two speed setup, in spite of the variable speed nomenclature, it’ll still need reprogramming if your battery dies, and it will still fail, in spite of the fuse, if the output or fan shorts out.
I'm not saying it's a terrible choice, I just think the DCC is a better thought out solution. Most people choose the DCC for the variable speed, but my car is worth a lot more than the controller, so if I was making a choice to buy either one, and for obvious reasons I wasn't, then I would spend the extra few bucks for the short circuit, overtemperature, self extinguishing epoxy, and firewall protection without even considering the variable speed. It's not just what you see and use every day that's worth the extra money. Some of the more important things are what you don't see and hopefully never need to use.