Repair this stuff for a living, even have about 5 old full VFD based instrument clusters back at the shop, there brightness failed badly after only 12 years (especially if left in the sun) and there power supply was quite the broadband noise source once the caps began to fail
Stepper motor movements are fine so long as they use some level of micro-stepping, to hide the stair step effect (really apparent on some bus speedo's, e.g. 0.5km steps)
Sine / Cos drivers (When calibrated and balanced!) are the nicest, as you can pick the small trends in it very easily,
LCD speedo's are a little tiresome, as you have to have that 0.5 second pause to process the number every time you look down, which is longer than "Does pointer sit at right mark"
It may have improved now with the entire panel essentially being an LCD on modern cars, (I don't see these things until they start failing), but back in the led segment type speedo's, it was a pain, And making a LCD panel that will survive up to 15 years in full daylight is hard.
As to making your own cluster, in general the baseline you have to meet for driving around while your instrument cluster is being repaired is:
You must be able to tell your road speed, and for the speed to not read slower than the vehicles road speed, (so yes you can use a GPS as a speedo in this case)
You must be able to tell if your fuel tank is low, or your engine temp too high (prevents people being stuck on the side of the road)
As for what you need to do to make it pass registration, Make it meet the same functions as your existing panel, so many older cars have panels retrofitted from other vehicles, and they pass rego. Including multiple times where we have supplied a bunch of individual gauges and warning lights in a laser cut panel to replace the original.