I know that you can restore the entire disk from a TM backup. Thing is, my backup drive is the exact same size as my internal drive, so TM would use that up quite quickly. And so far, I haven't really had a need to go back to an earlier version of a file. But I am thinking about getting a Time Capsule, anyway.
I was mostly arguing against the "I don't need to backup X, because I have it on DVD/on a different computer/can find it again online/etc." It's too easy to fool yourself into thinking that, and realizing that you can't find something online or on that burned DVD anymore doesn't make things easier when your harddisk dies at exactly the wrong moment. And they usually do.
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