That's interesting. I've only seen that used when running an application or script while I'm in the directory- not when something is a "target" of a command. Could I also do
Yes, you could but look up the difference between relative and absolute pathing.
If you use /home/jsmith then you can (normally) only restore it to that location, whereas, if you archive it with a relative name '.' you can restore it anywhere.
So when your user reports that he has lost a file you can restore the archive in some completely different location WITHOUT overwriting his current files. That's why most pro's always use relative pathnames.