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From what I know, this is recommended because most houses in RC are enormous (large multi-floored apartment blocks still count as one building), so if they happen to get 'touched' by the random house algorithm it can turn the entire thing into a burnt-out ruin or a madman's party den full of booze. It doesn't break anything to have it turned on, it just might be a little weird with some of the buildings in RC. I'd say it's a matter of preference, of course nothing will break if you turn it off, either.