This technique is called "dirty rect" updating and was common prior to the times when computers were fast enough to draw the entire frame anew each time. The reasons why most people don't do dirty rect updating anymore are twofold:
1) It doesn't work for 3D, because any change in the camera location or angle requires a complete redraw, not just a "scroll", due to the perspective projection, and
2) It is always more interesting to have everything animating, like trees blowing slowly in the breeze and so on, so typically you always use the horsepower you have to make as much stuff on the screen animate as possible, if only subtly.
We will be animating as much as we can in Handmade Hero, so we won't be using dirty rect updating even though we are 2D. However, we will do some things to minimize redraw, such as pre-compositing part of the background that does not change frequently (the ground, etc.) so we don't have to recompute it every frame, which is similar in spirit to dirty rect updating (you can think of it as "dirty layer" updating, perhaps... rather than it being about regions of the screen, it's about layers of the screen and whether or not they need to be recomputed)
- Casey