No because the above mentioned --apply-log won't update LSN in xtrabackup_checkpoints, thus every next incremental backup will copy pages modified since the last full backup. That's not what you want to achieve
UPD
To implement your scenario you need:
Take full backup
innobackupex --no-timestamp /path/full
Save the last LSN
# cat /path/full/xtrabackup_checkpoints
backup_type = full-backuped
from_lsn = 0
to_lsn = 1887987291
last_lsn = 1887987291
compact = 0
to_lsn=`grep to_lsn /path/full/xtrabackup_checkpoints | awk '{ print $3 }'`
Apply xtrabackup REDO log
innobackupex --apply-log --redo-only /path/full/
Take incremental backup
innobackupex --no-timestamp --incremental /path/inc/ --incremental-lsn=$to_lsn
Save last LSN
# cat /path/inc/xtrabackup_checkpoints
backup_type = incremental
from_lsn = 1887987291
to_lsn = 1887987291
last_lsn = 1887987291
compact = 0
to_lsn=`grep to_lsn /path/inc/xtrabackup_checkpoints | awk '{ print $3 }'`
Apply incremental changes and REDO log
innobackupex --apply-log --redo-only --incremental-dir=/path/inc /path/full/
Remove directory with incremental backup
rm -r /path/inc
Repeat 4-7 as many as you need. /path/full will contain the last version of your database.
When you want to restore the database
Finish applying logs(= create REDO log):
innobackupex --apply-log /path/full
Copy the backup copy to datadir
mv /path/full/* /var/lib/mysql
Fix permissions (Check that options in /path/full/backup-my.cnf are the same as in /etc/my.cnf (/etc/mysql/my.cnf for Debian))
chown -R mysql /var/lib/mysql
Start MySQL
/etc/init.d/mysql start