Again - it all boils down to what your purpose is and how much flexibility you want. Sometimes a complete image restore is the best option and sometimes it's complete overkill.
Here's an example:
I had a disk image that was taken Friday. I worked on three songs over the course of the weekend and did some really great stuff on two of them, but on the third, I completely wrecked the whole thing. No - I don't just mean that I had some bad takes, I mean that I completely deleted all of the audio in the song.
If I have a disk image and I want to restore and I don't have the option of individual files/folders, I have to make copies of all the stuff I want to keep, restore the disk image, then put back all of the stuff I wanted to keep. With a folder/file backup, you could choose to restore JUST the stuff that you messed up, without having to worry about overwriting all of the GOOD work you did.
Another example - I have recorded a huge number of vocal tracks on a track. I have backed up on Friday and Saturday, then overwrote my files on Sunday. I want to go back to certain copies of the things I overwrote, but don't want to replace ALL of the files. A folder/file backup will allow for this.
On the flip side: I have an image backup of a c: drive operating system. I have an issue with a new application or driver that I install and my OS no longer boots. A file backup in a case like this is next to useless. A disk boot image, however can me back up and running in almost no time with very little loss and probably no impact on my data files.
Another example: I have a drive image file and my disk just completely dies. I have a disk image backup and I have a folder/file backup. Which one do I use? Could really go either way here, as either one, for a data drive, would get back files, so pick the one that is the most recent, the most complete, or the program that you are most comfortable with to do the restore.
The point is that there is no ONE answer to backups. I have a pretty solid philosophy that if you only have one backup (local, remote, one type or another) you have no backup. And if you don't periodically test that your backup is sound and restorable, you also have no backups.
Know what your purpose is. Know where your backups are. Know what your plan will be to restore your folders/files/images.
Clear?