Thanks for that link. It would be a lot simpler if Apple would simply say that either choice has the same result: both are encrypted.
I guess this is a bit of a rant but it's frustrating:
If you click "iCloud", for instance, you read that 'the most important data' copies to iPhone. What does that even mean? Does it mean that everything on your phone with the exception of music and apps are copied to iCloud? Who decides what's 'most important'? Does it mean only recent stuff? What about love letters to my wife? Are they important? And not a word about encryption (which is covered in the link you provided but ought to be here).
If you click "This Computer", you read that a "full backup" is made on your Mac. Sounds good! But this isn't true either, not in the sense that anybody understands 'backup'. And since the phrase doesn't appear when you choose iCloud, what is included in this 'Full Backup' that's not in the iCloud option?
Argh.
Yea, I know what it means. I think. It means I can choose either one, depending on what's most convenient for me. Backups are encrypted either way. Why not just say so?
/rant
(oh: and to complicate things further, a recent restoration to a new iPhone neglected to retain screen arrangements or wallpaper choices. Things I can setup myself, but when this happens, people wonder what else was left behind.).