As to online backups, I think of these as an "in addition to" kind of backup, not an "instead of". It all depends on your level of paranoia.
We have an in-office backup (actually a fail-over complete server). This is for a failure of the primary server, and very fast to get online.
Off site at home is fine, as long as there is not a Katrina or Sandy level event. Unlikely, but possible. This is where I think the online backup comes in to play. If I really need it, the fact that it takes 36 hrs to retrieve all of my data won't be an issue. Lots of other things will need fixing first.
