Why not always use an X4 decoder?

Hello All -- When using a quadrature encoder when is is benefitial to use a X2 decoder rather than X4 even though an X4 decoder offers double the angual resolution? Is the existance of X1, X2, and X4 decoders becuase of the limitation of some DAQs which are not compatible with say X4 decoding and therefore the use has no choice but to use X2 decoding? Thanks!