First of all, I am NOT a TC expert, obviously. And I have read the manual on persistence, I have a .pdf copy of it on my desktop that I have referenced many times since the start of this project.
Secondly, I am not as concerned as to what TC is classified as out of the box -- is it a distro or not? Anyone's guess. You say it's a tool kit -- perfect, we'll go with that. But the shear FACT of the matter is, with just a handful of small extensions, it should accomplish what we need it to, just needs to be ironed out a little for our purpose.
Thirdly, this is what .filetool.lst looks like:
opt
home
opt/eth0.sh
opt/alsa
opt/modprobe.conf
usr/lib/alsa/asound.state
Fourthly, backup is performed on each reboot. Probably won't need to do that every time, but will reduce the frequency of that when we reach a fully working platform that will have no changes made. That was my understanding of persistence. If it is wrong, okay. Then I misunderstood what was well documented in the book, but it wasn't as if it hasn't been consulted. When I installed TC to a flash drive, the only bootcode I used was nodhcp. Everything else was default.