There is nothing inexact about differential indexing, compound indexing may be another matter. Some dividing heads such as the Cincinnati can do may prime numbers, but others like the B&S, the plates are not large enough to accommodate numbers of holes much larger that the standard plates without modification of the crank and sector arms.
I accept the premise of making inexact plates and repeating the process to diminish error, but I have the dividing head and the gearing, and it takes little time to set it up. A 127 tooth gear could likely be used to index a dividing plate for drilling, but using that plate may be problematic for many dividing heads that might not be able to make use of a plate that is necessarily that large in diameter.