The backups are indeed incremental. Only changed files are backed up. And files are directly accessible for restoring via copy / paste onto other drives.
Here is my folder of desktop backgrounds (wallpaper). Note the time and date added to the filenames. Fully searchable. Can view tiles and thumbnails, like any other folders.
When I start to run out of space, fewer versions of files will be retained. You may also notice that I also have a networked Apple Time Capsule drive or two. I like the Apple Time Capsule backup and restore scheme. But I like this, too. More direct.
Check out the pathname. Naturally records that files were on the C drive, and retains the path.
Saved me a few times already. I like where this is going with Windows 10.