[TerranC]

Well, from what I've heard, the palace facility is somewhat like the Proportions mod culture center but Much less expensive and less daunting, but still revered as one of principal buildings on your homeworld.

If it was destroyed, basically it means your whole council was destroyed and a big bummer for your whole population.

But since it was just a facility, it was easy to destroy and since you really can't say that if your palace was destroyed, your empire is still happy and dandy so they decided to cut it.

And another thing about giving independence to your colony worlds were dropped I think since we don't see it on the game.