Yes, the continual backup would be good, as is raid-1. Raid-5 has the advantage of using less disk. Ie. with 5 200gb drives in raid-5 you get 800gb of storage. With raid-1 or other plain backup, then not counting compression, you get only 500gb.

Of course you do not get the performance hits. I have had a lot of drive failures of late. The drives are cheaper, and the systems are running hotter as well, I suspect.