The things you described are not "new content". It is a mod, "Complex Breeding". And yes, it is a total overhaul of the base game, changing many things. Including some things that would be nice to keep.
What difficulty were you playing? Clutter rule should only happen on hard and above difficulty.
CB just has higher expenses than the base game, so you'll be selling slaves and monsters just to avoid paying their upkeep.
About tentacle rooms - goblins have low birth limits, so if you've run out of birth limits in your tentacle rooms, they would stop producing milk, and thus stop bringing you money.
I agree with you about special slaves not being that good in CB. The elf and the sheep having sacred essence is nice (because it's hard to get at early stages), and that's it.
I had played on a harder difficulty because that is what I played on without the mod. However, I got blindsided super hard by that exponentially increasing cost system, and I only learned about it way after it crippled my run by checking here. I've played a bit more after knowing about it, and it went a lot better. I'm still skeptical on it though.
I get that it's a mod and not a new official patch, but it adds a bunch of new things like races and professions. I'd like to play with that content, but it'd be nice if doing so didn't involve giving up things like race/character traits and the blacksmith. I understand that the current system has removed them and replaced them, but it isn't hard to imagine how both could be used at the same time. The blacksmith for example could just add the classroom modifier into her pool of slave room mods instead of replacing the entire list with that one mod.
And, there is still a trait system. I'm not sure how technically challenging it would be, but maybe just expand the maximum limit of traits and guarantee the racial's again while keeping the current implementation? From reading the notes it even seems like some races still get racial traits, but they just removed it from the rest for some reason.
Other content like tentacle rooms and milk as consumables (straight money is just less interesting.) has been all but removed through really heavy nerfs. It'd be cool if they could be integrated into the new systems instead of effectively removed. Perhaps milk could give noninheritable essence stats, and maybe tentacle eggs could be used as consumables to transform races/traits on existing slaves instead of having to give birth to new ones for that. Integrating them into the brothel (corrupting clients for some purpose) or into the profession system (maybe a different way to change jobs) would also be interesting.
I do think a lot of this probably stems from the fact that this is an overhaul, and I understand it is trying very hard to address the glaring issue of the game's ceiling being reached so quickly in the base version. But at the same time, it seems like the game is being stretched in some ways by removing content which provides potential shortcuts to victory. Of course though, that just leads to less things being done in a longer playtime. I'm just not going to spend time messing with tentacles rooms at all anymore for example.