Creating generated clocks in timequest

Looks correct. LPM_COUNTER should be just a regular counter built with carry-chains. (Each output, if used as a clock, is a ripple clock, but they don't ripple into the next bits clock port, i.e. they're all driven by pll_clk)

Also note that if you drive this clock off chip and want to relate data to it, you need another generated clock, i.e.:

create_generated_clock -name "mclk_out" -source [get_pins {inst|pll_counter|LPM_COUNTER_component|auto_generated|counter_reg_bit[0]|q}] [get_ports mclk_out]

That tells how the clock leaves the chip. You could then use mclk_out as the -clock option for a data output's set_output_delay constraint. I'm not sure what you're doing, just mentioning it as an option.