What good is FULL hard drive backup(not clone)?

All these years and I still haven't figured out how to properly backup
my hard drive. Well, I've decided to figure it out.
But first, I need to have a couple of points straightened out.

Method #1. I know that a hard drive image or clone is the best idea
because if you crash your drive you can reload the clone and instantly
have an operational pc.

Method #2. I know that if you backup(not clone, but a simple backup)
your important folders or files, such as downloads and documents you
can simple restore them after a system crash, but only AFTER you have
reinstalled your operating system. This is a pretty simple method and
works well to keep important files safe and requires a minimal amount
of cds or dvds.

Method #3. Now heres where it gets complicated for me.
A full system backup(not a clone, but a simple backup).
What is the point? You backup your whole system, using tons of cds or a
few dvds and then after a system crash you restore the whole system
only to find out that your system doesn't boot. So you end up
reinstalling the whole system from scratch and then use you "Whole
System Backup" to reinstall your downloads and documents folders. So,
I might as well have used method #2 right from the get-go.

My question is this...Is there a way to use method #3 (a full system
backup) in such a way as to get a fully operational system from a
restore? I suspect that boot files and registry need to be handled in a
special way.
Or is a clone or image backup the only way to do this?
Or am I totally missing the point?

Is there a truely meaningful tutorial out there that can be understood
by the simplist of minds?

Thanks...