You're quite right, I had forgotten about that detail. But I chose the sensor because of its low power draw, and because my application does not require high switching frequencies. As you might've noticed in the datasheet, the sensor is rather slow compared to a true hall effect. And as Ebe just said, the type of sensor doesn't make a real difference as long as it's low power and sensitive enough for the application.The sensor you are using is a magnetoresistive sensor, it is not a hall effect.
