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Okay, it looks like the Time Capsule is the way to go. I saw something about the archiving features somewhere earlier but wasn't able to find it yesterday again. I'm thinking I'll go with the smaller 500GB version of the Time Capsule and add an external drive connected to it via USB.
I'm still interested in feedback on external hard drives in the 500GB to 1TB range. I love the low prices on storage these days (1TB for under $200!), but it makes me wonder if the current drives are as reliable as I'd want them to be if I'm going to entrust that much data to them.
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"If you're happy and you know it, think again." -- Guru Pitka
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