[andars]

Could you clarify what is nonlinear about that system? From your description, it sounds like a high (4+) order (mostly) linear system. The motor probably has nonlinear dynamics, but so does everything and treating it as linear should work ok.

I suspect the difficulties you've experienced stem not from nonlinearity, but from trying to control a system poorly approximated by a second order system with a second order controller. By cascading, both PID controllers effectively "see" a plant that looks more or less second order, so the controllers are much more effective.