Actually, the sensor is way more accurate than 0.2%, amazing as that seems.
It represents altitude from -1000 through 57000 feet, and it's absolute accuracy over time is +/-20 feet, and the resolution is much less than a foot. You can take a unit with the sensor running, and move it from a table top to the floor, and measure the height of the table from the pressure change. A standard air data quality pressure transducer has <0.05% Full-Scale Including Temperature Effects Over -40 to +85° C. That's long term accuracy, it's much better short term, and obviously the resolution is very good.
I have spent more time with the DDS solution, and that seems to be the way to go. I can use a TCXO as the input clock, and then divide it down to the correct range. Analog Devices has a number of them that look like a good fit.
1Hz resolution at 500KHz, would give a ludicrous 0.0016% resolution!
Remember, one person's ludicrous is another person's requirement.
I agree it doesn't require 0.0016%, but we want the conversion to be more accurate than the input data accuracy for obvious reasons, since errors here add to the total system error budget.
BTW, I'm not processing the sensor, I'm trying to emulate the sensor output for some external equipment.