Kiyosaki and RDPD was great to propagate and popularize the ideals of generating passive streams of cashflow. 

Doesn't help when agents don't understand it either and continue to propagate a misunderstanding of the rule. 

So, you've fallen for the malarkey propagated by the real estate industry that you should buy a "starter house", then a move up house then a mini-mansion, etc.

I don't see any cracks propagating in the walls but I would be concerned.

There are two types of asset protection with an LLC: Inside liability (when something happens within the LLC and it does not propagate to your personal assets), and outside liability (when something happens to you, and it can not propagate to your LLC).

If the property is listed in MLS, it should propagate to all the other sites like Zillow, Trulia, Realtor etc. .

Are there any especially egregious falsehoods that these shows propagate to watch out for?

I think there is a macro picture here and you are manipulating an anecdotal situation, to one couple, to paint the picture of the agenda you would like to propagate. 

Both are two different tools of asset protection that are not exclusive.Liability insurance covers you financially up to the policy limit (if the insurance does not deny you coverage based on their many exclusion clauses).LLC are used to insulate your assets in different boxes to avoid propagation of liability from one box to the other.

And if you believe in God, where God comes in.We are wired to survive and propagate.