Near as I can tell, point-in-time-restore works just like restore-from-snapshot - when I did them manually using the console, they both resulted in whole new RDS instances.
I was a bit disappointed with that at first. But I actually access RDS with a route53 domain name managed by TF, so this way it means I can do any verification of the new instance, then just swap the domain name using TF. Minimal downtime and maximum flexibility that way and no rush to get the DB swapped over, so that's nice.
Documentation side-note:
Both mechanisms reset the RDS instance's security and parameter groups; restore-from-snapshot done from TF also ignores it (I guess AWS are ignoring it at the API level too). It might be worth noting in the TF snapshot_identifier argument documentation that the user will need to "double apply" in order to get their parameter group and security group set properly (TF works fine the second time, I'm assuming it's just AWS ignoring the API values you're sending). Might also be worth noting the second apply will put your RDS instance in "reboot needed" state too (although, at that point, you're actually documenting AWS behaviour rather than anything related to TF, might not wanna do that).