For building a non-contact displacement sensor sensitive to micrometer to millimeter motion, the self-mixing laser interferometer is generally considered a better choice than capacitive sensors, despite the latter being less expensive. Capacitive sensors can face issues like offset shifts over time, making them unreliable for absolute position measurements, while laser interferometers provide relative displacement information but require a limit stop for absolute positioning. Capacitive sensors need to be positioned very close to the target, and their performance can be affected by humidity, although this typically results in offset rather than sensitivity errors. The choice between these technologies depends on specific requirements for resolution, accuracy, and environmental conditions. Ultimately, understanding the strengths and weaknesses of each sensor type is crucial for making an informed decision.