There is one in the iTunes app that allows you to back up to DVD. If you have an iDisk (MobileMe) and a MAC, the built-in back up program has an option for iTunes music. I know there is a download for Windows machines and iDisk but I have not played with it to know its details. You can back-up to other locations, you are not restricted to an iDisk.
Do a Google search for pulling music from an iPod and you will find some apps and manual ways of doing it. Below is an example.
http://www.methodshop.com/gadgets/ipodsupport/copyoff/index.shtmlLastly, if you back-up your entire drive, you should be able to put it back if one drive or the computer crashes. I think Norton Ghost creates a full bootable image option. You can run a small raid array and build it to mirror the other drive. When one drive goes down, you boot from the other.
So there are options, even outside of iTunes. Some people just do not like iTunes and the ways that it handles data, I can live with that. To each there own. I prefer the simple and easy way so I can spend time on the bike and riding instead of fixing my computer (I also come home to a MAC). NOT INTENDED TO START A OS/HARDWARE WAR.
PS. If my comment to Tramp sounded mean, that was not my intentions and sorry for that. Being in IT, I deal with these issues and the user never backs up data and I am the bad guy because of times I cannot retrieve the data and I wont fork out the money for DriveSavers to get it for them.