Getting into the unnecessary details: in classic live ISO fashion, the root (/) filesystem is tmpfs. Then I have at most 1 persistence drive and/or at most 1 9pfs mount. From there, I use bind mounts to only persist the few folders/files that I want preserved. For example, I'll have my persistence drive mounted at /persist and I'll bind mount "/var/lib/etcd" to "/persist/var/lib/etcd". Then when I reboot, everything outside of "/persist" is wiped out and I'm back to the initial iso + anything in /persist. So it is very similar to running a docker image with a volume mount, or running tails with persistence.
I build it all via NixOS and I use Impermanence to manage the bind mounts to the persist drive: https://wiki.nixos.org/wiki/Impermanence
You cannot do this without help from the filesystem. That's why rsync itself does not support this, and it has to be done by a specialized btrfs tool in this case.
That, and still claiming it’s “better than rsync”? Seems like you shouldn’t compare it with rsync (yet, if doing delta merges is planned)