Well, I thought I should put up a little miniguide for this and let you guys know that it is not completely useless, it serves some safety precautions for you guys in your town, actually. If you don't like what a villager is wearing, is saying, or is showing off letters you don't want them having, head to the Town Hall. Talk to either Phyllis or Pelly under the Civic center window and select 'Got a problem!', and select 'Residents.' They will then ask you which resident is causing the problem, and you can select whichever one you don't like.
Slobby: This means the clothing, and if you select this it changes the selected villager's clothing back to their initial clothing, also known as the shirt they wear when they first move into your town. This is very useful if somebody put an inappropriate pattern in your Able Sisters and they are not strutting it around, or if you just don't like what they are wearing this is a quick fix for you.
Rude: This refers to their catchphrase, and if you select this it changes the selected villager's catchphrase back to their initial catchphrase, also known as the word they say when they first move into your town, such as "snarrrl" for Wolfgang. This is very useful if somebody programmed your villager to say something inappropriate, or if you'd just like them to have their old phrase back.
Weird Letters: This refers to the obvious, letters. If you select this it erases that villagers memory from any letters it has, say it was parading around some inappropriate mail and showing it off. Very useful if you leak something into a letter and it becomes a problem.
I hope this helped some of you!