Dan there might be a little "tension set" in a bow, but typically I think the majority of set is compression set. Most woods have a much higher strength in tension, so typically you are operating well within the elastic limit. Moreso than the compression side.
I envision normal set, as compressing the spring growth near the belly surface until it has a density similar to the surrounding summer growth. That is why you see some set in most bows, and more set in a bow made from wood that has more spring growth. You still get some set in backed bows using quarter-sawn wood, so there is certainly an element of set that works on the summer growth exclusively. I've had better luck with quartersawn belly slats though, and I think the reason is there is summer growth throughout the full width. The trick with summer wood, is to adjust the limb width so you aren't "counting" the amount of spring growth.
It'd be simple enough to put some set in a slat, and then cut it in half and see which part shows the set. I've heard of people doing this, but haven't done it myself. Mostly I've heard that the set shows on the belly side almost exclusively.