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It seems like you've misremembered the situation somewhat. Merkle developed several of his families of mechanical logic, including this one, in order to answer some criticisms of Drexler's earliest mechanical nanotechnology proposals. Specifically: 1. Chemists were concerned that rod logic knobs touching each other would form chemical bonds and remain stuck together, rather than disengaging for the next clock cycle. (Macroscopic metal parts usually don't work this way, though "cold welding" is a thing, especially in space.) So this proposal‚ like some earlier ones like Merkle's buckling-spring logic, avoids any contact between unconnected parts of the mechanism, whether sliding or coming into and out of contact. 2. Someone calculated the power density of one of Drexler's early proposals and found that it exceeded the power density of high explosives during detonation, which obviously poses significant challenges for mechanism durability. You could just run them many orders of magnitude slower, but Merkle tackled the issue instead by designing reversible logic families which can dissipate arbitrarily little power per logic operation, only dissipating energy to erase stored bits. So, there's nothing preventing this kind of mechanism from scaling down to single atoms, and we already have working mechanisms like the atomic force microscope which demonstrate that even intermittent single-atom contact can work mechanically in just the way you'd expect it to from your macroscopic in