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I'm pretty sure it's only used when your Time Machine drive is not available. So, if you're looking on your iMac where the drive is likely hooked up routinely, you may never actually dip into it.
As far as Apple fixing it, I'm not sure that it's really a bug. The idea is to backup revisions to your documents even when your Time Machine drive is unavailable - so it's pretty much working exactly as designed. Now, with that said, I'd rather that they just give me a toggle to turn the functionality off.
Yep, this is correct. I disabled it, and believe it or not it had more effect on improving battery life than saving disk space.
You mean a GUI toggle, rather than having to resort to a command line?