The added features are not worth $100/year to me otherwise I would have selected that service plan.
I certainly don't consider a photo hosting site a legitimate backup strategy. The upload speed alone makes that unworkable. I can archive 4.7GB of pictures to a $0.40 DVD.
There are quite a few $300 or less consumer point-and-shoots with 12MB+ sensors now on the market so this will potentially impact more than just "expensive" camera owners.