These kinds of topics are fascinating....but I agree, they make my head hurt too.
I've actually created graphs like that one in college using machines that put bending stress on wood samples. If I remember correctlty...every time you put stress on the sample, you put a little more than the last time. You apply a load, you back off, record the result, then you add a little more load, back off, record the results, etc....
There are two things the chart does not show: wood will permanently deform if exposed to the same load over a period time (like a bow that is braced for long periods), and the elastic limit changes over multiple exposures to stress (like when you exercise the bow and shoot it in). That little area is not something that remains constant as we build the bow. Therefore, it is difficult to use it to any advantage.
As bowyers, we should always be working in the area under the proportional limit. If you notice that the bow feels a bit "plastic" during tillering, you should be worried that you are over stressing the bow...not excited about feeling less stack. JMHO.