We have been using prox switches for years to measure roll diameter. They work great. The one disadvantage as SimonGoldsworthy stated, the new roll diameter. For unwind applications we look at are corehold interlock to reset the diameter. And for rewind applications we look at the drive itself. If its turned off we assume the diameter to be zero or core diameter.
Another disadvantge is if the roll in out of round some averaging will have to be done.
We have used ultrasonics before, they worked but, I wasn't very impressed. I just completed a special unit that used a Magpower system.
The ultrasonic are just to shaky for me