Does "internet sharing" negate the need to buy a wireless router?

[Whackintosh]

I'm considering getting a Time Capsule, but I wonder if the Imac's internet sharing feature is powerful enough that I can save on buying a TC and just get a large external hdd for backups instead. What kind of range do the Imacs give off for shared wireless (I haven't bought my machine yet)?

[GimmeSlack12]

The range isn't that big. It cannot compare with a wireless router. If you are in a dorm room or something it'd be fine, or a small studio apt. maaaaybe.

My point is, the range is really small (radius of 10 ft. with line of sight)?