While I do understand that an external data separator is a good thing, I was one of those
who did a design using the internal data separator using the WD1771 (and later National)
chip. It was on a M6800 system I did some work on, and it seemed to work OK for me. I
was using (originally) 35 track Seagate drives, but later used 40 track ones.
I used 256 byte sectors (10 per track). If I git an error, I just did a retry. No real
problems.
Just my experience. I still have a system operational (I haven't turned it on in a
few years, but may soon). I also interfaced various hard disks. What fun. It was 1976
and also worked on Qume (daisywheel) printers (it only takes a single PIA to interface to
them!).
I'm sure that others will have different views on data separators. My experience was
a bit different, I don't know what I did different (maybe it was something!).