That is correct. There is a little bit about that at the very end of the help document if it's worth anything. It's sole purpose (at least initially) is to help with what you just described. I accidentally deleted a command and clicked, 'done' and would have liked to have been able to get it back. So, from that, your last 10, 'commits' are stored in the backup folder. I may increase that number o_O.
It's helped in cases where a profile gets corrupt for some reason, so I've considered making an automatic check to get a, 'last-known working profile' if something like that happens (it may already do that... can't remember... too much software).