If all their other customers on the $5/month unlimited backup plan store less than 1TB, but since it’s really aggressive about backing up everything (no, please don’t back up my steam games) on your computer I think they go over that.
They can't deduplicate properly encrypted data, that will have to happen client-side. So while they can deduplicate your data (if you have a copy of a picture in multiple places or maybe even a game installed on multiple machines), it won't work across users.