I describe the "Exclude" state as the happy middle-ground between Hide and Suppress. With Hide, your part disappears from view, but it's still fully present in the model, so (aside from a bit on the rendering end) it doesn't reduce any of the stress on your system. Additionally, a hidden component is still calculated in your mass properties. When you suppress a component, you also end up suppressing the components that reference the original - certainly not always ideal. And then there's Exclude. Excluded components are "considered, but not really there" - see below example.
Say you have an assembly of parts A, B, and C. C is fully and solely constrained to B, and B is fully and solely constrained to A (A is fully defined, say Default).
If you hide B, B disappears from view. A mass properties calculation will still take B into account.
If you suppress B, B and C will both be suppressed. A mass properties calculation will take neither B nor C into account.
If you exclude B, B will disappear from view, while A and C will remain. A mass properties calculation will not take B into account, but will take A and C into account.
Furthermore, if you move A, C will also move, as the empty placeholder of B moves with A, and C moves with the empty placeholder of B (you may need to switch your assembly back to master rep for this to update, though).