That's correct up to repacking, because extensions start from / not /dest. Also before repacking I'd remove the man page (/tmp/dest/usr/local/share/man directory)
Here's repacking fixed up:
# Repack the new Xorg.tcel, change owner and move to safe place.
$ cd /tmp/dest
$ find etc usr var -not -type d > ../list
$ sudo tar czf ../Xorg-7.4.tcel -T ../list
$ sudo chown tc:staff ../Xorg-7.4.tcel
$ cp ../Xorg-7.4.tcel /home/tc
edit: -T ../list instead of -T list, typos happen