I mentioned and demonstrated the use of this feature tonight.

A post on Revit’s Wikihelp site shows a good example. See http://wikihelp.autodesk.com/index.php?title=Revit/enu/Community/Tips_%26_Tricks/Modeling/Cut_with_unattached_family_instance_voids

It also helpfully shows which categories can be cut.
File:Revit/enu/Community/Tips_&_Tricks/Modeling/Cut_with_unattached_family_instance_voids/categories.png

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