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Thank you, Squirrely Girl! You explained it perfectly as I could not do!
YES, PNMs rank in order of their preference, they do not CUT a house. Then the computer matches as closely as possible with which houses invited you back! So you almost always go to the maximum number of parties! (Unless you got cut by a bunch of houses. In which case, there is no difference between the two systems. You can only go back to houses that invited you back). And then even "less cool" houses get decent size parties. It definitely eleviates all the PNMs going to one or two specific houses because of reputation.
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