Is the ratio between the two linear moves constant or changing? If it is changing, then I would say yeah, AXCAM should do the job, but would definitely need a short dwell at the end to set up the next cycle. If the ratio is constant and you just need to make small corrections on the fly, I'd look at AXFOLLOW. If this is a straight Y = X * variable ratio, AXGEAR might work, just compute the desired ratio for each cycle.
When following an encoder, high resolution is your friend. There is a filter that you can use to smooth out the velocity calc, but the slaving is only as good as the master's velocity. At the extremes, fast filter == rough slave and slow filter == laggy slave, so more resolution makes it easier to find the smooth enough/responsive enough compromise.
We are planning to do an AXIS module for BRX, which adds more axes as expansion I/O (and replaces CTRIO2 on BRX), but we do not envision building such for DL205.