Thanks again! I sincerely appreciate your confirming my understanding is correct.
"Interesting setup": Using a 1TB SSD($$$), I also use Carbon Copy Cloner to backup my Mac daily. When the Mac is stolen or damaged, I can use the SSD to externally boot another Mac or clone the SSD to a new Mac. Downloading 500GB from ARQ backup data set from the cloud does not seem to be practical. So it is a real life scenario. I also do time machine backup on a hard drive because it is cheaper.
Definitely agreed - 500GB to cloud is expensive - much cheaper to do time machine or carbon copy. Very cool. I'm jealous of your setup . Definitely agree that CCC is a great way to back up a Mac for easy reproduction if lost or stolen. Best of wishes!