Pullups are used when actually working with a FILM print (i.e actually going to 35mm or 70mm for projection). A "pullup" (in film terms as opposed to timecode terms) is the first 26 frames of the NEXT reel that are spliced onto this reel to avoid glitches in the sound during reel changeover. Even in these days of automated projection, they are still necessary, as the film still ships in AB reels that are assembled at the cinema into the master projection reel (I've spent way too much time in projection booths lately). Even in the case of DCP, assuming the project still has a 35mm component, the DCP Master will be assembled from those original FILM reels. The fades past LFOA sound great in theory, but in practice they will probably be removed at the lab/printmaster when the pullups are done. Always make sure your reel breaks work as a hard cut, and you won't have any nasty surprises at projection.
In practice I've never actually HAD a problem, even with projects where the director/producer didn't listen to practical advice and cut according to reel breaks, but you're always playing with fire when you do that.
If of course you're dealing with a 100% DCP/Digital workflow-say RED/Alexa straight to DCP playout, then these rules don't apply. But given the number of non-DCP cinemas still in existence, it'll be a while before these thing disappear for theatrical releases.
If you think THIS is fun, you should try dealing with Optical Counts! :)