Pretty every scrolling game on the C64 uses the character mode as "tiles". It may well have been more limited than the NES - I have no idea what the NES hardware was like, but it reduced the amount of copying enough that it was rarely a major problem. The low number of hardware sprites usable per raster line was sometimes a limitation, but not very often - people got around it by using characters and/or careful level design.
While this is cool, I'm surprised people find this impressive - it's nothing special for C64 games. E.g. compare the Mario clone Giana Sisters (1987):
https://www.youtube.com/watch?v=8teXm6723-g
To a more technically impressive C64 scrolling game like R-Type:
https://www.youtube.com/watch?v=Bft5BhWIzTU
Or Shadow of the Beast (though a shadow - sorry - of the Amiga version) with its many parallax layers:
https://www.youtube.com/watch?v=R_GdJiEjSho
Both have heavy use of a mix of raster interrupts to scroll independent parts of the screen separately, and sprites, coupled with updating the bitmap of some custom characters.