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My system at home relies on both an onsite and offsite backup.
I have one high-end desktop system that acts as a file server (mainly sharing Windows 7 libraries) and 4 netbooks running Windows 7 that all backup to the server occasionally.
The server has an external hard drive and the internal drive is mirrored to the external drive.
I also use Carbonite to make an offsite backup of the internal drive.
If my house should be destroyed by fire, I want an offsite backup. If I just space out and delete a file or directory accidentally, I use the onsite backup to retrieve those as it's worlds faster.
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