Data loss can be incredibly frustrating.
Having a server at home where I dump complete backups of all me consoles on really helps. (think Xbox's HDD, 360 HDD/MU/NAND, PS2 HDD + image of the Memory units, PS3 HDD + NOR dump, 3DS NAND + SD backup etc)
Even if I haven't used a console in a year, doing a yearly backup of everything all at once is another great way to fight data loss.
If you ever plan on doing such a thing on a external harddrive or w/e, make sure you compare the dumps.
If everything matches then you can delete the old obsolete backup.
Never just dump and store, always dump, compare and then store.
I honestly don't think doing periodic backups is overkill, it's something everybody should do if they cared about their data.