I thought a soffet was the material between the edge of the roof and the exterior wall of the house. We used to put proper vents in the soffits of new houses when i was an insulatior.
Also, i think the reason the recesed lighting(cans) are done the way they are is because they are the older style lights that get really hot and will burn if anything is around them. When i insulated those lights were always a pain in tha ass cause contractors would skimp out and buy the cheap ones, and if we put material near them it was a fire hazard, but because they didnt get done people would complain about cold coming from them. We would always get blamed for not insulating them properly when it was really the contrator that goofed and didnt but them with the saftey shutoff.