REFRESH means "pull any state changes from the database into my representation". Cascading this is simple; it means that all associated entities are refreshed.
MERGE means something complex that approximates "save" but is more like "push this detached entity back into managed status and save its state changes"; the cascading means that all associated entities get pushed back the same way, and the managed-entity handle you get back from .merge() has all managed entities associated with it.