I did a quick test on the iPhone 5 iOS 7.1.1:
I put some files in "/ Library / Caches" ( NSCachesDirectory ) and marked them with the NSURLIsExcludedFromBackupKey attribute. Then I put several large files in the same directory in the usual way.
Then I made a warning about running out of disk space by taking a long video with the camera app. After the warning, files marked as “do not back up” were not deleted from the cache, but there were other files! Thus, this attribute really works and does two different things, despite its name - it excludes from backups and saves it from being cleaned when warning about low space.
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