I think there is no constant velocity in our every-day engineering problems. Even a car moving with a seemingly constant velocity, has too many low-amplitude diminutive changes in its velocity, although it seems it is moving with a constant velocity. Hence, the sensor is not wrong in producing noise and jitter, but it is showing us the true variation in the measured signal, even if we wrongly expect it to be very smooth.
The control process, becomes unsatisfactory, because our model is inaccurate. So I think it is not due to sensor measurement noise that the controller behaves unwantedly, but degeneracy is due to our idealistic dynamic model of reality which is not accurate. Sensor usually shows the fairly true measurement although the signal seems noisy. I think the sensed signal is to some extent true, the actual signal is idealistic and wrong. The control design fumbles these inaccuracies together and ultimately gives an almost seemingly satisfactory outcome.
Please let me know other sources of noise, you think that cause jitter in the measured signal.
Thank you.