Dowie resigned as Latics boss last week to return south and Sunderland-born Philliskirk has rejected the chance to follow him putting his family life first.
"I could have gone as Iain’s assistant, and I’ve had sleepless nights over the decision. Only time will tell whether it would have benefited my career, but I know for sure it wouldn’t have helped my family life." he told the Oldham Chronicle.
“I was tempted, but Palace’s location had a bearing because my children are aged nine and 12 and we are settled here. It would have been a huge step to uproot them during the most formative years of their lives. In the end, I wasn’t prepared to do it. There was the option to stay down there on my own and commute every other weekend, but my family life still would have suffered.
“Iain is disappointed and, in some respects, so am I. But family came before career and I’ve always enjoyed working at Oldham.”
Former Bolton player Philliskirk 38, scored 51 goals in 141 appearances for the Trotters between 1989 and 1992 becoming a cult hero forming a leathal partnership with David Reeves in the process.