Blogger Backup Utility

Backup or not?
It is not a question, the question is what need to be backup and how do I do it?
I used google docs to edit my docs also saved it in my local computer,
upload photo pixs to Picasa/Photobucket site.
After that it is published to my blogspot site.
So if I've saved google docs in my document folder and pixs in my picture folder,
isn't that a backup already?
maybe I have to back up the structures of blogger too.
So this blogger backup utility may be handy for this purpose. (download)
Installed, Test-run, And have the XML files save inmy local folder.
what is next?
How am I to test this backup works?
Am I supposed to delete all my blogs then restored back onto the internet to make sure that this backup work?