I've been experimenting with inexpensive PWM controllers available from eBay and Amazon. A basic unit costs three or four pounds for something that offers high frequency 21khz PWM which appears to be kind to motors, while giving a very fine level of control.
Here's a link to one:
http://www.amazon.co.uk/gp/product/B00GX6YDOO?psc=1&redirect=true&ref_=oh_aui_detailpage_o04_s00
and the other
http://www.amazon.co.uk/Adjustable-Motor-Speed-Controller-Switch/dp/B00Y2AV4G8/ref=sr_1_11?s=electronics&ie=UTF8&qid=1435143421&sr=1-11&keywords=pwm+speed+controller
Adding on a direction switch, case and any necessary connecting plugs won't break the bank.
The controllers need a DC feed, so I've got one with a 9v block battery and one with a 5.5x2.1mm socket to accept a low cost switch mode plug-in power supply.
These will also fit in a 16mm battery loco... ;-)
The cheap PWMs don't quite handle my Marklin narrow gauge chassis as well as the Pentroller or other feedback controllers, the main issue is a rather abrupt start. Once moving, slow running can be achieved. I think this is down to the characteristics of the Marklin motor rather than the controller. They do work well with my 2mm locos. Overall, I think the Pentroller still has the edge.
Top tip for the coast & brake Pentroller, don't over-use the brake control, it's a rotary switch which can suffer a bit if heavily used. I tend to keep it set on a light brake setting and use the speed control instead. Stewart did make a unit with a variable pot instead of the switch but it was tricky to find the right brake setting.
The hand-held unit you have from Phil is one that was made for a Nn3 modeller in the US and has a Z scale setting for Marklin mechs. Phil repatriated it when the previous owner went DCC.
Mark