"Their purpose is to be sacrificial in case the coolant freezes -- the pressure of expanding ice will hopefully just push out the caps, instead of literally cracking and bursting the block."
Fortunately for many, over the years those plugs have popped due to freezing, as you describe. However their real purpose is to plug the holes left when the sand core is removed after the block has been cast (as in cast iron). In the trade they are called "core plugs".
The freeze protection is purely serendipitous, and should not be relied on in lieu of anti-freeze.
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Bruce Young, '93 940-NA (current), 240s (one V8), 140s, 122s, since '63.
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