So the point of this backup system is nothing.. they still tell you to keep your own backups.
You expect more for $5/mo?
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I'm sure they'll use it if something happens and it's their fault. But if you screw up, they probably won't intervene.
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I have seen from GlobalTap.com backup technology - disk-to-disk backup. They have built a state-of-the-art data storage system for our clients. Extremely fast Fiber Chanel network, specially designed and built with data storage in mind, ties together storage devices with multiple layers of redundancy. Their RAID storage devices have multiple hot-spares, and are constantly monitored for any signs of impending problems.