These stories are symbolic psychology, not literal history, and here the spirit itself recoils at the cost of the purge it has carried out inside the self. Jacob is the spirit, and his fear of being made to stink among the dwellers of the low lands is the anxiety of the higher self after it has cut down the lower thoughts, feeling exposed and outnumbered among the crowding powers of the ordinary mind. The house he fears to lose is the whole self, the temple of the person he dreads may be overrun.
The Canaanites are the dwellers of the low lands, the human mind at its ground level, and the spirit worries that these massed lower forces will gather and destroy it. This is the inner drama of a person who has begun to clear the mind and now feels the remaining lower nature press back, threatening the very self that did the clearing.
Jacob: the spirit within a person
House: yourself, the whole temple of the person
Canaanites: the dwellers of the low lands, the human mind at its ground level
Perizzites: the scattered open-country thoughts of the lower nature that mass against the spirit