There are options good and bad.
I’d back up just the dockers. The OS can be rebuilt easily enough. Yes Rsync the data
Or. Shut it down, pull the SD card, put it in another computer and rip it as an image, Full bootable backup
I would do the first not the second.
I love pihole, for my family it is better as it helps on all the devices. Being able to block malware and tracking is nice too