Hi @ThijsK,
1. The on-die oscillator described in chapter 2.3 refers to the INLC100Q16's clock circuitry:

And even though it does have limited accuracy, the whole system is designed for the +-30% variance, so there should be no issues with the on-die oscillator.
2. Section 3.1.2 showcases a hardware design reference for ISELED based on the S32K1xx family. This is the recommended circuitry also found in AN5426. It is simply the go-to reference design for an oscillator.
3. The only recommended clock configuration is as stated in chapter 4.2.1:

Since the ISELED driver also uses the FlexIO and SPI drivers, you can configure these two drivers from the MCU with any configuration. You can use AN5408 (S32K1xx Clock Calculator Guide) to help you design a clock configuration which fits your needs.
4. I think it would be better to import the example included in the ISELED driver and see the values assigned to each clock module, instead of guessing the clock dividers and configurations.
5. Consistent means that the Timer CLK should be equal to the interface clock. This is to ensure synchronization between the timer and the communication interface.
Even though this document describes the solution and how to integrate it with the S32K1xx devices, I would strongly suggest porting over to the newer RTD package instead of the older SDK; The ISELED team is not continuing to do maintenance or support for SDK ISELED anymore.
If you have further questions, please help me entering a support ticket instead of posting in the public forum.
Best regards,
Julián