You raise good points. The backup would essentially be for only "My Documents" although at some point I would like to start backing up the image on a daily basis too. Never planned on trying to backup the operating system. It's too much fun reinstalling it :)
Aren't settings and preferences in the OS directory? How about serial # registrations for your software? It's a real pain to reinstall the OS AND all the programs AND finding the serial numbers to make them work.
Leaving any data, software, etc. in only one place, locally or remotely is a guarantee that one day, some or all of it will be lost. I like living dangerously, but losing essential data is crossing the line. I store critical info in several places in the "cloud" [where did that come from?] as well as locally. Everything else is like my travel philosophy: I carry one overnight bag. Anything I lose or don't have, I either don't need or can find as I go, but I do have lists/links/accounts that I can use, just in case.
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