Well, first off, in my opinion, you have to be really paranoid that someone is going to try to circumvent or tamper with your security system in order to gain access to your home. In my case they would have to literally chisel through stucco in order to get to the wiring.
But even if they bypassed the door or window contacts, they would still have to manage not being detected by the multiple motion detectors throughout the home.
Let me try to explain in detail how an EOL loop works.
You know that a zone operates on a "closed" loop that, when "opened" will alarm. What this means is a magnetic contact that you have in a door or window will act like a simple on or off switch. When the magnet is near or door closed, the contact will short or close, when the magnet is far or door opened, the contact will open.
A short will cause current to flow between the two screw terminals (on the alarm board) of a zone. An open will cause zero current to flow between those two terminals.
Now let’s make up some numbers just for the purpose of this conversation. Say when the contacts are closed or shorted that causes one amp to flow between a set of door terminals (on the alarm board). So when the door opens, zero current will flow between the terminals. Your alarm board knows the difference between zero and one amp and will alarm on any current less than one amp.
Now let’s say someone wants to circumvent your door alarm contact. They make a hole in the side of your house and are able to find the pair of wires that go to your door. If they very carefully strip or nick the two wires and place a "jumper" across them, that will act like a short correct? So, if they do this, then open the door, what happens? Well the door contact opens but guess what, because they have a jumper across the wires going to that contact they "bypassed" it, thus one amp will still flow between the door's two terminals at the alarm panel. The panel will never "see" the door open because of this short, which is between the magnet contacts and the zone's terminals on the alarm board.
So how would one go about to disable this kind of circumvention? Well, wouldn't it be cool if it were a LOT harder to bypass an alarm contact? The way you do this is by placing an EOL resistor near the magnetic contact.
Now, with that EOL resistor in place you no longer have a short circuit, but a circuit with this resistor in the loop. In other words the panel sees the value of the EOL resistor between the terminals at the alarm panel when the magnet contact is closed.
With an EOL resistor in place you will draw a different current value than with a short circuit correct? This is the main reason why EOL resistors work!
Let’s say that you draw .5 amps between the two terminals of your door with this EOL resistor in place and with the door closed. Now, because you set up your alarm panel with this EOL resistor in place (set up its software) it will alarm on any current that is higher or lower then 0.5 amps.
Now if this same person tried to place a jumper across the wires as before what happens? He essentially "shorts" the terminals of that zone, thus causing a lot more current to flow between those terminals (he bypasses the resistor this time and, because you now have a lot lower resistance between the terminals, the current will increase). The alarm will sound as the panel will detect this as a fault.
If he of course just opens the door this will cause an open circuit which causes zero current to flow, which alarms the panel as well (remember the panel was drawing 0.5 amps and anything above or below this value will cause an alarm.
So you can see the value of placing an EOL resistor near the magnetic contacts. If the resistor was placed in the panel instead, when the person shorted the wires with a jumper what would happen? Well, the current between the terminals would remain the SAME because he did not bypass the resistor this time, thus the current does not change and the zone will not alarm.
I hope this makes the EOL concept a little clearer (I'm getting tired of typing so I have to stop

). I personally don't use EOL resistors, BUT my Caddx panel lets me have that option (because it changes the current trip level that the zone will alarm now that I don't have any resistor in the loop).
Let me know if you need any further help. We have some professional installers (I just play one on TV) that may also want to give some more helpful comments as well.
Regards,
BSR