Culling, Relationship Culling & Decay: Current Status

From this thread I understand that culling will only hit unhoused, non-played or non-favoured households.

This seems odd to me because the new Favourite Household system, with its population cap, seems to be a major change. It looks like a good system. However, if it only adds the ability to protect non-played and homeless households, I am not sure I see the point.