Ultimately, the best method I find to reinstall is from scratch. If you have a recent backup and are confident that all of your data is correct from the Time Machine backup then I would suggest an Erase and Install from a Leopard or original system disk and then restoring from the backup when it boots for the first time via the Migration Assistant.
While Archive and Install is similar and sufficient for most software problems I personally love a good format and reinstall with fresh updates. Always makes me feel warm inside.
Otherwise, the only time it would be absolutely necessary is when the system is completely hosed [Archive does not fix all, but most problems with the system], or when you do not have enough free space on your drive to perform an Archive as the old system folder is renamed Previous System and set aside for your review and deletion.