Imho version control could be used for deployment but only when you use the release-branch of your project.
And ofcourse NEVER put your config in version-control ;)
I'm not sure I'd make that blanket statement. Version control seems like a great place for configuration. It allows you to centrally manage configuration details and provides an audit trail for debugging. You just want to make sure it is in a separate, secure repository and not mixed in with your app development.
You may want to look into salt, chef or puppet, which let you separate out your configuration from your security credentials.
Why wouldn't you want to version your configurations in general? Maybe I am not sure what you mean by "config" but in general version controlled configuration is always good. I even set up git in my etc sometimes to track changes I make to it manually (not in production, on my home machine).