Oh! So the issue with large postgres backups is the number of files?
It was a major pain point for my backups for years.
They create a new file with the diffs of a bundle of Postgres files, and upload that to blob storage.
For example, tools like Plakar (contributor here) split data into smaller immutable chunks and only store the modified ones, avoiding full re-uploads of 1GB files when only a few bytes change.