Exclude object just 'excludes' it from being drawn to the screen. The object isn't placed in memory when the command is called because it is already in memory when the object is created. Does it use less memory? Not too sure but I think it does, because if it didn't then what is the difference between exclude and hide object. I think exclude stops the object from going to video memory. Once again though, I am not sure about that.
When something is deleted from memory it doesn't actually go to that memory address and set everything to null, instead it just forgets about that memory address, but the information most likely is still there. But it doesn't "eat up" memory, because if you create another object or variable it will simply overwrite the previous info.
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