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XIO2001: Clocking and Powerdown Sequence Questions

Part Number: XIO2001

I had 2 questions regarding this specific PN: XIO2001IZAJ 

1. The Datasheet says that there are two reference clock options. What could go wrong if a differential CLK is generated locally?

2. This chip has a power down sequence: PERST asserted first, then REFCLK removed, and then supply voltages removed.  If this sequence was not followed, would there be any damage to the chip? Or is it necessary that we find a way to implement this?