Answer

Yes, the order of resolving Damage and removal or replacement of Invaders effects on a Power Card does matter for Fear generation and Blight.

Reasoning

• Fear Generation:

  • Destroying a Town generates 1 Fear, and destroying a City generates 2 Fear.
  • Removing or replacing Invaders does not generate Fear.
  • If you deal Damage first and destroy a Town or City, you generate Fear. If you remove or replace the Invader before dealing Damage, you do not generate Fear for that Invader, because it was not destroyed by Damage.
  • Source: page 18

    Destroying a Town generates 1 Fear and destroying a City generates 2 Fear, but removing or replacing does not.

• Blight:

  • Blight is added during the Ravage step if Invaders deal 2 or more Damage to the land.
  • If a Power Card's effect removes or replaces Invaders before they would deal Damage (such as before the Ravage step), those Invaders are not present to deal Damage, and thus less or no Blight may be added.
  • If Damage is dealt to Invaders (destroying them) before they could Ravage, they also won't deal Damage to the land, preventing Blight.
  • Source: page 9

    Invaders Damage the Land: If 2 or more Damage is dealt, add a Blight to the land.

Order of Effects

• You must resolve the effects of a Power Card in the order written on the card.
• If Damage is listed first, resolve it first (possibly destroying Invaders and generating Fear).
• If removal or replacement is listed first, resolve that first (removing Invaders without generating Fear).

Summary

• Order matters: Damage before removal can generate Fear; removal before Damage does not.
• Blight is only affected if Invaders are present to Ravage; removing or destroying them first can prevent Blight.

Source: page 18 (Damage, Destruction, and Removal), page 9 (Ravage and Blight), page 15 (Invaders and Blight).

Source: Core Rulebook (pp. 15, 18, 20, 8, 9)