Time Machine and File Vault - How does it REALLY work?

Good afternoon,
I ran some tests and I can't figure out exactly how Time Machine behaves with Filevault.. here's what I did:
I ran a backup manually. It backed up about 265megabytes. This was right after iTunes downloaded an update for my iPhone. This is weird, because that is stored in Library/iTunes/iPhone Software updates, which is in my FileVault user data.
I ran a second backup right after. It backed up 726Kb. Sounds like not much has changed.
Then, I copied a folder (mp3 album) from my NAS to a folder called Time Machine Test in my home folder.. 91megabytes of files.
I started a backup. Sure enough, it backed up about 91megabytes.
After the backup completed, I mounted the Sparsebundle file, and my files were there. I could copy them back properly.
Can someone explain to me exactly what TM can backup while logged in, and what gets backed up only when I log off?
It seems to me like actual files are being backed up, while the complete encrypted sparsebundle is backed up at logoff only. But if that's the case, why isn't there an option to restore individual files other than by mountaing the TM volume manually?

infrid wrote: We shouldn't accept this as a price we pay for using other operating system features. Gepeto is quite right : it's unnacceptable, and Apple should sort it out.
Hmm. I guess it depends on whether you want your Time Machine backups to be encrypted or not.
If you use a whole disk encryption solution like PGP, Time Machine works fine when logged-in but all your data is backed-up as though encryption were not present, because one you have booted, the encryption is invisible to applications including Time Machine.
If you enable FileVault, and remove your Home Directory from the exclusions, TM will back up the files in the same way when you're logged in but they will be unencrypted on the backup drive.
With FileVault enabled and Home Directory excluded, it is not the FILES that are being backed up, but the encrypted VOLUME which is essentially one big file containing all the individual files in your Home Directory. It's similar to a TrueCrypt encrypted volume in this sense. It needs to be backed up unmounted which is why it only happens when you log off.
The only thing Apple could do would be to create an encrypted volume for the TM backup and synchronize that with your FileVault volume. Not quote the same thing as Time Machine though.
Message was edited by: Gledders

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