[quote name='bvharris']Clarification on rule #2 - I assume that doesn't also work the other way? For example, if our team cuts someone at the end of training camp, we don't have to do the same, do we? I'm sure we don't, but just wanted to confirm.[/QUOTE]
Yes and to take that further, if someone is cut and then picked up by another team you don't have to give that player up. Thus "this only applies to the Madden FA pool" and not the entire pool of players in the game.
It's just not feasible. For example, I think my 3rd TE will probably be cut (Mulligan), but that means Cumberland will win the spot. Cumberland doesn't even exist in the game as of now and so he will never exist in our franchise, as much as I'd like to have him. So it doesn't make sense for me to not only not have him, but have to cut his lesser replacement.