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1) No problem at all downsizing. In the first step of the clone wizard, drag the source partitions down to the destination one at a time in the order you want them to exist on the destination. When you get to a partition you wish to resize, before dragging down the next partition, select it in the Destination row and click "Cloned partition properties". There you'll have a chance to resize it up or down. Then continue staging the rest of your clone operation. If you were setting this up as a recurring task rather than a one-off for a migration, cloning to a destination smaller than the source has some limitations like preventing Rapid Delta Clone and BitLocker Live Clone from being used, but that doesn’t pertain to your use case.
2) You can leave that OEM Recovery partition behind. Worst case you may have to boot into the Rescue environment and run "Fix boot problems", but I suspect even that won't be necessary.