While I have some questions about it, and no doubt there are some gotchas, Apple's upcoming Time Machine application for its Mac OS X 10.5 "Leopard" OS update, due in the new year, finally made me go, "Aha! That's the way it's supposed to work." Yes, you need a separate disk volume for your backups, but that's a good idea anyway. And except for the wacky galaxy background (which I hope you can change), the user interface is a brilliant idea.
I think the OS upgrade will be worth it for that single application alone.