Can the Time Machine Backup disk (BUD), be a RAID instead of a single physical disk?
If I am going to set something like this TM, I may want to get a mini and connect a bunch of external drives and create a Raid 0 and Raid 1 set or maybe a raid 5 but do not think apple supports it.
A mini makes for a quite expensive RAID and I don't like the rat's nest of cables and wall worts. Better to buy a box that holds multiple internal drives. These boxes are cheaper than a Mini too. If you did it this way then yes TM could use it as a "BOD" because these boxes "look" just like one big drive. I think as soon as you have three disk drive RAID5 is the best option