Can you back up Time Machine and store files as well?

Ive been reading on and on about Time Campsule, and in the early stages of it has been mentioned if you use this as a back up for your laptop (Time machine) to not use it as a storing place for files?
For example,
I have two macbook pro's.  I want to store time machine of both of my laptops onto time capsule, so if my hard drive dies, or laptop is stolen I can just restore from time capsule.  (That might be a question in itself, If my laptop is stolen can I restore from a back up in time capsule onto a new macbook pro?)
But I also would like to store my photo's, songs, doc's etc.. onto time capsule as a stoarge drive, so I can just pull the files from each laptop and vice versa.  I was hearing if your going to be using time capsuel as a storage unit and putting your time machine to it as well, its not a good idea because the hard drive will fail? Is this still the case?

I understand having all your data on a drive is not a back up. (I was wanting to use time capsule as a stoage drive "not a backup" along with time machine "to back up the whole computer.")  I guess what im trying to say is, can time capsule store files on it as well as use time machine? 
So if time machine will take up all your space on your time capsule, will it delete the older back ups of time machine to create new space for the new backups? The hard drive in total is only 500gb of each mabook, that would be a total of 1TB.

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