You'd think. But I just checked three couples in my ward. In LUWS, only the member wife shows up. In the new directory, he shows up as HoH.
The only privacy settings that are "individual" is displaying the individual phone and email. Removing the name is only at the household level.
Indeed. I am in the same boat with a Sister who is HoH in MLS and is separated from her husband; however in the new directory the Husband appears as HoH, even though he isn't on MLS, or lives under the same roof!