I've decided to purchase a single stage HP/dual stage NG furnace duel fuel system and while waiting for my install date I've been reading through the Lennox Wifi manual. It appears that the thermostat allows me to set the stages by either temperature based, timer based or a combination of temp and time. It also allows me to enter the furnace lockout temp and a compressor lockout temp. Upon initial read through I'd think that these points should align roughly with the cost balance point and thermal balance point.

Let's say that the heat pump is cost effective to run until 20 degrees but the thermal balance point where the heat loss of the house matches the heat output of the HP is at 35 degrees. If I were to run the HP between those two stages the house would not be warming up, but also not cooling as fast as with it not running. This should prevent the furnace from cycling as often and save some money, is this correct? I'd imagine if this is the case, and that the thermostat was using temperature based stages, that the HP would be running nearly constantly until the furnace kicks in. Would this be harmful to the HP? Would it be better to set the thermostat to use a temperature/timer based stage logic instead of a temperature only logic?