Hi Jason,
You can't have it both ways ! You are either looking for a measurement or an indication. With or without an elephants foot you will still get an indication.
[Quote] you are not looking for a measurement just movement of the needle [/quote] Your post.
The whole idea of using an elephants foot is that it provides a parallel surface to a round object. Though I do appreciate the exaggeration in your drawing to illustrate your point.
The idea of a long pointer is flexibility. A long thin pointer will follow the punch mark centre even if held rigid in a drill chuck at the tailstock end.
As far as a spring goes, yes I agree, it saves having to apply a little pressure to the tailstock wheel. My centre finder is simply a 10" inch length of 5 mm diameter rod, pointed at one end and dimpled at the other, no springs.