It's definitely not in your face. I've been using Windows 11 in some fashion ever since it was released, and I didn't even know there was a backup app. I just ran it now to look at it, and it's pretty tame. It syncs app installs from the Windows Store (which you don't even need to use ever) and some settings like accessibility. I've long since removed OneDrive, which is what it looks as if the backup app uses to sync folders, so it's disabled for me.
I'm not sure the backup app even does anything on it's own, really. It seems like it's just displaying some settings from other apps in a central location. 🤷♂️ This seems like a non story to me.