I've used NCOs for lots of telecom designs. The jitter P-P (time) amplitude depends on the NCO clock frequency and the jitter spectral content (phase modulation) depends on the division ratios. While you can use the full output word and feed it into a D/A converter and filter, you can often take the MSbit output and run it through a simple L/C filter, or sometimes a SAW filter, or occasionally an inexpensive PLL, and reduce the jitter to extremely low levels. There are many types of NCOs, including arbitrary fraction types.
In my telecom applications, I often needed to synchronize multiple clocks, with mechanisms for carrying asynchronous data on a synchronous channel, and sometimes regenerating the asynchronous clock at the other end. Legacy telecom networks seem to like using prime number-related clocks, so simple dividers just won't do the job. NCOs and their relatives can provide the required precision, stability and flexibility, and can do it at a much lower cost and smaller footprint than the traditional VCXO PLL designs.