That sounds like a problem. A backup should never be empty. It should always have everything necessary to restore an account regardless of security concerns due to possible mishandling(weak encryption).

Having a backup with nothing in it is decidedly less secure than a backup with a weak password.

What is it about the cloud wallet that it can't create a backup? Obviously it has access to the various keys if you're able to copy them down. It seems silly and awkward that you would have to switch types just to make a backup.

Hopefully we can redesign this to a more universal design.

To maybe answer my own question: if you have the password you don't need a backup. If you're prone to losing passwords, the backup isn't going to help. But, consider someone may want to cold-store offline a lightly encrypted or unencrypted file just in case they lose their cloud password.

Anyway, whether or not it's useful for a single account and password, the backup function should still work. With a more unified wallet/login you'd use the same function for both single accounts and a list of accounts.