Tinycore is here 12/1/2008! Welcome visitors.
Repeated backing up of static content is a waste of time.The length of time to perform such is even more so.The point of separate directories is the separation of static content versus dynamic.
The restore occurs after extensions are loaded, so I'm assuming it would not work. It will work if you have a persistent home, but in that case you probably wouldn't have home in your backup anyway.