Unfortunately, most consumers are just this naive.
Learnings that all people should take from this:
Backup your computer’s data to a secondary hard drive AND to an offsite cloud service.
Backup your smartphone device to a local computer as an encrypted password protected backup AND to an offsite cloud service.
Hard drives are known to fail and data recovery from a failed harddrive is very expensive. When I say “expensive” I mean that you should expect nothing less than a 4 digit bill for the recovery, IF they are even able to recover the data.
It is much cheaper to buy a $400 hard drive as your local backup drive (or buy a time capsule) and pay $59/yr for a cloud service like Carbonite than it is to pay for data recovery.
In the case of the plaintive in the linked story, 3 years of Carbonite at $59/year and the cost of his time capsule would still cost less than paying for data recovery services.
If you are concerned about data on the Time Machine backup that is only located on the Time Machine drive then you need to either duplicate your Time Machine Backups to a 3rd drive or look into using a RAID solution as your Time machine drive.
As we continue to transition to this digital world we need to remember to keep this personal data securely backed up in multiple locations. People need to have a data backup schemes for all of the personal devices in their house.