The big downside I see to this---unless I'm misunderstanding this, which happens a lot
---is that by virtue of the fact that you're mixing heated and unheated wort, you are guaranteeing that the wort in your exchanger is hotter than your target temp when you are slewing the temp around. For example, if your target temperature is 6 degrees hotter than the bulk temp in the MLT, and your control system has decided to set the valve at 50%, that implies that the temperature coming out of the heat exchanger is 12 degrees hotter than the MLT, or 6 degrees over target. So while your MLT temp never overshoots, you're still potentially overheating the wort as it goes through the exchanger.
Ok Never thought of that problem. Is that why most people use the two solenoids and on/off control? When using on/off control would I just cycle the valves to maintain my desired output temp?