I bet a similar feature is available for the 396.
The same 296 data-cable works on the 396 - it's different on the 196. The cable can not only power the GPS (12v or 28v systems, it takes any power source), but in that single connector also has audio-out to your intercom for traffic, terrain, and obstruction warnings via a
voice (it's a separate audio-feed from the XM plug as of several software updates back).
There's no provision to interface to an encoder that I know of, but you can set up the data-in cable to interface with an ARINC/AV400 data source (another GPS, for example). As of a few software-updates back the GPS automatically finds the closest altimeter setting (via XM) and loads it into the E6B page.