I use, in lieu of DX1002 coontrollers, PSDT center off momentary toggles. Adjacent to the toggles I have LEDs to indicate switch position. They work.
Technique is to study the schematic for the switch motors, and wire LEDs (with appropriate resistors) across the terminals of the toggle, so that minute current is flowing through the switch motors to power the LEDs, but not enough current to cause the switch motors to partially activate. Trick is that, by studying the internal wiring schematic of the switch motor, which contains diodes, you can see which direction to wire the LEDs. You may have to use more-than-expected resistance in the circuit, because the DZ1000s can be affected by slight currents. For example, 60ma incandescent bulbs allow to much current to pass.
This is essentially the same wiring (except for being polarity sensitive) as Lionel used on their PW 022 switches. The controller bulb is wired acros the controller terminals and therefore in series with one side of the switch motor coil. The controller shorts across the bulb to all sufficient current to flow through the coil to activate it.