Using my option, there is one caste to create called Rotations (actually two castes, a second one is for households I've deemed "tax exempt" but that's getting fancy so let's set that one aside although I've explained that on the page). The caste includes the settings changes -- sims can't move houses, get pregnant, adopt, get a new pet, skill up, change jobs, get new romantic partners or breakup, etc. as the player wants. Keeping your let's say 9 protected families in the caste while they are not active protects them against these forms of progression. The 10th one, the one you are now playing, is not subject to these protections because you take them out of the protected caste to play them. Everyone else in town is not subject to these restrictions because they are not caste members and they are free to progress or not as SP otherwise deems fit.
There is no need to change household or individual sim options as you rotate, the whole point of the caste system is to allow its protection to extend to the households you have designated by placing them manually in the caste. So the answer to your question is, no settings need to be changed upon switching households. Just put the soon to become inactive household back into the protected caste. If you wish to change the caste protection options across the board, there is then only one place to change them needed instead of 10.
The reason I insist upon taking them out of the protected caste in order to play is that some of my settings (can't be or become pregnant, can't level up on jobs and skills) will interfere with active play if they are left in the caste while being played.
You CAN theoretically do this without castes and instead change all of the sims' or their households' settings manually as you rotate. But that's the much more cumbersome way and very prone to user error.
