Recom and
CUI (in Digi-Key) make some 78xx-series switchers as linear regulator replacements. I use a Recom product in one of my commercial products, but the CUI device (5V-18V input, +3.3V@1A) appears to require a footprint of 0.6"x0.5" (about the size of an SOT-223 component) and a 10uF input capacitor; I may have to reconsider my continued use of the Recom product if a redesign is required.
If you used such a device, then you can provide +3.3V to the linear, and almost halve the +1.2V LDO's power dissipation. For my XC3S1400AN design I use a custom DC-DC regulator using a Microchip device. The 5V input is switched down to +3.3V, and a linear driven by that supply is used to generate the core voltage. The design uses a MicroBlaze in the FPGA, all of the Block RAM, and an SMSC Ethernet PHY (connected to the MicroBlaze Ethernet MAC-Lite). The regulators are not warm to the touch.
I hate being branded with the logos on the ICs as I'm probing the components with a finger when things don't work properly, so I really like for the regulators to be cool. Just a bit of a wuss in that regard.
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I was worried that the sequencing on power-up would be a problem (1.2V should be up before 3.3V), so I just connected both to 5V.
I don't like for the supplies to be way out of sequence, but the Spartan-3AN is not sensitive to the power sequencing.
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There is a lot of space between the regulators for the oscillator near bank0 or 2. I was hoping to keep the crystal away from the regulators, but I think it's OK.
The 5mil trace required to fan out the signals from the inner rows (BTW: very nice fanout of the FPGA) should be sufficient to snake a signal from one of the Bank 1/3 clock pins over to a Bank 0/2 clock pin. Multiple connections will not hurt. There's no reason that you have to move the oscillator. However, moving it will allow you to implement the recommendation I made earlier about the FPGA driving the processor clock input instead of the oscillator.