Disclaimers: I don't have any dial gauge, but I may get one. I have had a rear wheel come off at speed due to a failed bearing (VW Jetta, a long time ago). I didn't do the repair then, but the experience gives me an appreciation for doing it right. That's one reason my car is mostly sitting in my garage until I can get the bearings and alignment done correctly.

I would disagree that 1/2 to 3/4 increment is "close enough" though if you're going to recommend a tool. I'll agree that the $10 HF gauge is probably better than doing it purely by feel, but if you adjust to 1/2 of the smallest increment you are still out of tolerance. 0.0127 of travel lets the bearing move from 0.01 to 0.0227, 3/4 of one tick is 0.01 to 0.03. And this is talking about fractions of the smallest possible movement.

The least precise standard spec for a non-metric gauge that you can use seems to be around 0.0002 inches, although a 0.0005 inch probably does get to the "close enough" limit. That one at least lets you use 90% of the smallest possible increment.

And since they seem to be available for less than $25 on e-bay, maybe I'll get one.

http://cgi.ebay.com/BRAND-NEW-PRECISION-DIAL-TEST-INDICATOR-GAUGE-GAGE-C92_W0QQitemZ380154536867QQcategoryZ58239QQcmdZViewItemQQ_trksidZp3907.m263QQ_trkparmsZalgo%3DSIC%26 itu%3DUCI%252BIA%252BUA%252BFICS%252BUFI%252BDDSIC%26otn%3D12%26po%3DLVI%26ps%3D54

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&item=260378828974