Hi Steven,
There is no problem feeding in 5V differential signals directly int the SnapAmp differential inputs. That is what they were designed for.
A 120 Ohm termination resistor across each + and - input (2 per encoder) would be a good idea if your encoders are capable of driving that load. SnapAmp doesn't have any termination on board.
+5V passes straight through the boards and through the connectors so the main limitation is the ~1A limit of the connectors. You should be able to draw at least 500ma for your encoders which would typically be more than enough for most encoders.
HTH
Regards
TK