Definitely. Data back up is manageable with say a 60 or 80GB drive, but if you upgrade to something much larger and use the additional space, it means having to have a home server or additional back up drive large enough to hold the new HDD imprint.
I used to back up individual game saves to USB drive, but doing them one by one became too tedious, especially since many of them are dynamic game saves that update each time you play the game.
Some like Rock Band won't even let you back up your game save, since it presumably contains an encrypted data key containing all your download track information. Considering all the hours I killed unlocking tracks in that game, I'd rather just start over completely with RB2 with the downloaded tracks from RB1 (great feature for $5).
Even if there was just something simpler like an user account data back up option (user game saves, installs and PSN purchases), it would allow much greater flexibility in addition to making the back up process much faster for those with larger drives.
I still have a 60GB back up imprint from about three months ago, but after finding out you couldn't just swap drives and use the console data stored on it, I decided to just start over from scratch. No game saves, no installs, etc. The only thing I have is my trophy data, which while nice, is nothing compared to the saves.
When I get the 60GB console fixed, I'll load up my old data back up on to that one and use it as a secondary/back up PS3 for playing PS2 games and old PS3 games. Figure I can then transfer the game saves back to the new console.
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