I'm a little confused - iPhone camera roll and the iCloud?

Okay - bear with me on this guys:

So I'm trying to get a grasp on how my photos on my iPhone 4S camera roll are backed up to the iCloud.

I've hit my 5GB of free iCloud storage, I hit the limit about 3 months ago and I get a notice about every day that my iPhone has not been backed up in x weeks. Does this mean that if my iPhone were to explode today I would lose all of the photos I've taken since the last back-up date (not counting the last 30 days thanks to Photo Stream)?

I believe I was thinking about "back ups" incorrectly. Each time my phone backs up, it doesn't add anything to a previous back up (i.e. It backs up on Jan 1, and on the 2nd I take 10 pictures. It doesn't just add the 10 pictures to the Jan 1 back up), it completely wipes out the previous back up and creates a new back up, correct? Incorrect?

So my next curiosity is when I manage my Usage in Settings on my iPhone it says my Photos & Camera take up 3.8 GB. In my iCloud Manage Storage on my phone it says Camera Roll is 4.8GB and that I need an additional 6.6GB to back up the phone, so was my above assumption on back ups not correct? (ahh)

So I went to my iCloud on my desktop thinking I could find my backed up photos there and delete some to clear space on my cloud (naive of me?) but they aren't there and apparently there's no way to access them on your iCloud?

Basically, we put my childhood dog to sleep yesterday and I want to do everything I can to make sure I don't lose all of my pictures of him and I'm going nuts trying to figure this out. I realize this is more of a long stumbling rant than a direct question but any general guideline for dummies on the iCloud and photos would be appreciated. I need to make sure I don't lose these pictures and I'm about to just buy more iCloud storage, I don't even trust my computer or external HD…

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