Yes and it's much better than burning discs. Just throw the ISO on a NTFS formatted HDD, in a folder called games and you're off. No discs, no burning, no error messages. And no restriction. (Some games just don't work burned, like Dragon's Dogma.)
As mentioned before if you have a large enough HDD. (ISOs are about 8.5GBs~) and the money to buy one go for it.
DVD-DL is quite expensive, so if you plan on backing up X amount of games (some of them are multi-disc too remember), then just in terms of money the xk3y can work out to be cheaper, not to mention more convenient (no need to buy a special burner, no need to drill a hole into the PCB for certain consoles). If you are no stranger to collecting things online, then you probably already have a few powered hard drives around.
Giving a Dual NAND to people that only want to play games and play on Live...
Not the best advice their is.
Their the most likely to screw up as they don't bother with updating the hacked kernel/updating Dashlaunch, setting patches etc etc.