Sbf files can be used to upgrade but are mainly used to recover a semi bricked device. The .340 sbf you used is a system only sbf file which is why your data remained intact. Most other full sbf files are the entire system and can contain your bootloader, kernel, system, and baseband all in one. If your phone gets stuck in an endless bootloop or your phone won't boot at all, and you can't get into recovery, the only solution is the sbf file. As long as you can access the bootlaoder and have a charged battery you can flash the sbf file. It's extra important for us because we can't enter Clockwork with a key sequence like most other phones so if you can't boot up your phone to bootstrap recovery, there may be no way to restore a backup or flash a new zip through clockwork.