In a situation where it's reasonably obvious who the top two finishers'll be, it works out much like (non-compulsory) IRV (unlike the Australian version, then). In a situation where that's not the case, expect the result to get down right screwy.
Sort of like Queensland and New South Wales state versions, then? Where it's optional preferential - in other words, you can number as many squares as you like? Yeah. Except imagine a situation where lots of people actually do refuse to choose between Labor and the Liberals. There weren't a lot of those in Qld - I guess because Australians are used to checking all the boxes?
Yes, of course. You're using real IRV. Thing is, it's usually obvious from the first count on who the final two will be, and in those cases it makes no difference.