Hi Ken. I fitted DRO to both Mill and Lathe last year. It does take a leap of faith to trust them after years of using handwheels and backing off and returning to take backlash into account. However once you do and you gain trust in them they are great.
I recently produced a batch of 20x 2 BA fitted bolts 1.5 " long shank. with 1/4 thread on the end that had to be accurate in the length of plain shank and thread . It is just so easy to set to zero on the end of the stock and run the length down accurately to a stop measurement. and each one comes out the same. As a tip, I personally find it easier to get the length right on the first pass and then reset that end point and work all subsequent passes towards zero.
When it comes to reducing diameter, that becomes even easier, except as people have mentioned you must be clear if your DRO is measuring in Radius or Diameter. once you know how much you need to remove, just read it directly from the DRO, no need to wind back and wind in again to eliminate backlash.
Practice on some scrap to build your faith in them and once you do trust them , believe me you will never want to go back !
Enjoy.