This is a good point, but you might expect them to back up untracked and modified files in the backup, along with everything else on your filesystem.

Eh, you really shouldn't do that for any kind of file that acts like a (an impromptu) database. This is how you get corruption. Especially when change information can be split across more than one file.

Sorry, what are you saying shouldn't be done? Backing up untracked/modified files in a bit repo? Or compressing the .git folder and backing it up as a unit?

> Backing up untracked/modified files in a bit repo?

This. It's best to do this in an atomic operation, such as a VSS style snapshot that then is consistent and done with no or paused operations on the files. Something like a zip is generally better because it takes less time on the file system than the upload process typically takes.