Yeah, but I'd at least want oil pressure, water temp, water pressure, shift light, and wideband O2. Ideally also want oil temp. They add up quick.
Could run separate water temp and oil pressure gauges as backup, but just the $20 cheapies as they are just there in case your dash dies (unlikely). I'll probably do something like that. 
I did say "primary" engine monitoring, not ALL. I only have 2 Stack gages (oil-P, H2O-T). I use the AEM Wideband at $150 vs. the AIM unit for $399. The 0-5V output is wired to an analog input. But then, the AEM would use one of your analog inputs. But, a $150 dollar premium to save an analog input seems pricey (but, I don't know how many you get). The other inputs are sensors only and just feed the data collector.
Obviously there are numerous ways to skin this cat, and no one right answer.
Cheapy redundant gages is one way, but now you have multiple sensors installed in the engine plumbing (oil lines, water hoses, etc). there is a cost for the double sensors, and minor risk of a leak at the additional penetrations.
More expensive "Pro" gages is another, only one sensor to purchase and penetration is required, but they cost a little more.
As this thread is somewhat cost minded, I spent a grand on my G2X system with 8 analog inputs (WidebandO2, FuelP, OilP, WaterT, brake, throttle, 2 spare), 2 "pro" gages noted above, Wideband o2, and warning lights. Granted I have to deal with the RacePak software...but, everyone has their complaints about ever data vendor's software. Point being, that using the "Pro" gages doesn't inherently drive the cost up to the $2k range you implied.