Windows Backup and Restore is an image only operation I believe, no? It does not support selective backup and restore operations, incremental backups, backup image browsing, etc.
First of all, there are 2 things being discussed here. The general purpose Windows backup utility which DOES allow selective backup and restore operations and has for years. The other tool coming to all versions of Windows 7 is the "system image" utility...which is for image purposes and complete PC restoration.
For a majority of users, it's easy to backup data files and such to an external hard drive, DVD, etc. The ability to create a "system image" provides the ability to capture your OS exactly how you want it and it's something that the average joe hasn't been able to do. Most manufactures include a utility to do this already....but for those who reinstall an OS on their own, or custom build their computers, or have the original OEM hard drive die...this is a nice feature.
Also depending on which version of Windows 7 the user purchases it may not support backup and restore to network locations.
Correct, only Ultimate, Enterprise and Professional will have the ability to create a "system image" and store that on a network location. All versions however will have ability to create an image and place it on a disk drive, an external hard drive or burn directly to DVD...which I think handles the majority of needs that people would have.
It does what it does and it is great that MS included it finally but it is still limited compared to 3rd party apps.
Absolutely, there will always be more fully featured apps available for people who need increased functionality. But the basic ability to restore your system from an image and copy your data files back from a USB drive makes it easy for most people. Hopefully the average person makes regular backups to external drives, flash drives or DVD's.
does this mine i can use 'Create a system image' to make a clone of my HDD to ie. install a higher capacity HDD?
Yes, this will allow you to do just that. I've used it for that very purpose just recently and it worked perfectly. I just backed up the original hard drive to my USB drive, took out the original, put in a new hard drive, booted from Windows 7 cd, said repair Windows, pointed it at image on external hard drive and about 10 minutes later I was back up and fully functional once again.