Difference between Time Machine and Backup

Besides the fact that to backup more than 100MB of data using Apple's Backup software you have to have a .Mac membership, what is the difference or pros and cons of using Time Machine vs. Backup for restoring lost or damaged files to their original location? Which one is easier and better for this or are they the same? Time Machine you can go back to a previous system state in case a newly installed item has created an issue, but can't you do the same thing by just uninstalling the item?

Time Machine and Apple's "Backup" are actually quite different. "Backup" creates archives which you can't read directly, and allows you to backup to optical media and online .Mac iDisk, as well as hard disks. You create "plans" for various folders or types of data that you want to backup, such as your Personal Settings, Documents, Photos, entire iLife, whatever. "Backup" typically makes an initial full backup and then does incremental backups after that for speed.
Time Machine you would typically use to backup your entire drive, and it saves files that are directly-readable. It doesn't backup to optical media like DVDs or to the iDisk.
The two apps are actually complimentary. You should backup your iTunes, iPhotos, etc to optical media periodically and save these disks off-site, like in a safe-deposit box. If want to keep your Personal Settings, Keychains, etc handy on a USB flash drive you can do that with "Backup" too. Backup allows you to set up custom backup plans that work for you. You can choose how often you want to backup to various destinations.
It is also good to use a cloner that makes bootable clones as well, such as SuperDuper! or CCC, so that you can restart immediately from the clone if your main drive won't boot.
I use all 3 methods, and actually used all 3 methods to restore my system just yesterday (after learning that the Leopard Graphics Update causes 12" Powerbooks to crash whenever attempting to use the DVD Player.app). I recloned my internal drive from bootable SuperDuper! backup that I had made before the Leopard Graphics Update (and then reapplied the 10.5.2 Combo and iLifeSupport), used Time Machine to restore more recent files, and then "Backup" to restore recent Keychain changes.

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