ZIP does files greater than 2 GB (in and out), as long as you use the ZIP/UNZIP supplied by RPM/YUM (my biggest ZIP backup file is 27 GB). I did try RAR, years ago, and found that ZIP is more user friendly (and does get updated occasionally). It is important to use the "y" parameter, so it handles symlinks properly, and the "S" parameter for hidden, and system, files. No "special" handling is required for either boot drives (even when you are booted from them), or data drives. The same command does work properly. You can also split it into more than one file, if you want to (the -s <size> parameter). I use the RAMDISK as a temporary storage place, while it is ZIPing, if there is enough room (the -b <temp location> parameter). That eliminates a lot of seek time. It still needs to copy the final result to the final location, but it is faster overall (especially when using spinning disks, but even with a SSD, it is a little faster - NVME can be a little faster than a RAMDISK). I do multiple ZIPs, at the same time (up to 6 of them). Some planning is required, for that to work with minimal interference, but it is always faster than doing them individually.
To restore a drive, or just individual files, I use the Arca Noae Archive Tool (it is also called ZIPPY, I think). For a full drive restore, I format it first, but the tool offers various ways to do a restore, while keeping existing files. I have done restore many times (even for multiple drives, at the same time, and usually not for a failure), with no problems. You still need to manage your backups, and you will still have problems if bad files get into your backups (with no other, older, backup to recover them from), but that has nothing to do with using ZIP as a backup tool.
I gave up trying to manage incremental, and differential, backups. It is always a case of "get it done now", and trying to figure out what needs to be restored, from multiple files, takes a lot longer than just doing a full restore. Of course, I also have a nightly backup (scheduled by the Drag Text Schedule feature), using RSync, where I can recover files that were changed after the full ZIP backup was done. UNZIP can be done using the ArcaOS installer System Management tools, if you don't have another operational (or partly operational) boot system.