personally i like keeping a copy of my OS on a partition of a portable hard drive. As a student currently thinking of upgrading and having had to have apple repair keyboard/trackpad and logic board of a 2007 mbp, its nice to have the security of being able to work on a mates/studio machine in the case that this one goes down. wouldn't have met deadlines without it!
can understand it's not for everyone though, and i guess time machine pretty much, if not does, offer the same kind of peace of mind