There are many advantages by doing this way.
- Less number of PowerCenter objects in the object which reduce development time and also less maintenance.
- Today you may be writing the records into that target table using PowerCenter flow. What if you get another application tomorrow that also writes records into that table? Your ID column values go bizarre in this scenario.
- During migration of objects from Dev to QA and also to Production further, there is no extra over-head of considering the persistent values of the sequence generator from the repository database.
In all of the above cases, a sequence created in the target database would make life lot easier for the table data maintenance and also for the PowerCenter development. In fact, databases will have specific mechanisms (focused) to deal with sequences and so you can implement manual Push-down optimization on your PowerCenter mapping design for yourself.