I have to kind of... disagree, at least in some part

Of course backing up on the same drive is pointless, but as for TC being a media storage... I really like it. Been using it for over a year now and it works
almost perfectly.
I backup my music library
manually - simply copy albums from my main 15", so that I can use them on my 13" and for my girlfriend to play on her White Macbook. Most of my 13MBP's iTunes library consists of music stored on the TC - since I have 256GB SSD I don't want to clutter it with music (it's about 70GBs right now), so I just keep my favorites on the internal drive and the rest is on the TC in the Data catalogue.
And it works fine.
Of course it stutters sometimes if I can't make up my mind and click the "next song" button 10 times in a period of couple of seconds. But it gets on track quickly. Other than it works seamlessly.
Nevertheless there's one golden rule to follow -
don't push "Play" until the TC is mounted - it can ruin the library:
files get lost and you gotta tell iTunes where they are. But that also doesn't happen every time and usually iTunes figures things out after you show it one track.
So as far as I understand that some may have had bad experiences with storing media on TC and really don't get the almost general bias.
My TC can't be the only one out there that's working well