S3 or other storage options make sense for a few small websites; the moment you have sites taking 1Tb each, and you intend to back them up for a 30-day retention span, you do not need to be too brilliant to see the problem.
I have a few clients like that, and we are backing up on a server with 8 TB of storage attached, which is used 30% of it.
If S3 had been used, you would require 40+ TB of storage to accommodate backups.
As an opposite example, if you have 100 GB websites S3, it makes sense (just because it is easy to set up, not because it is cheaper)
Enhance got backups right for all of us from the start. (I personally can not ask for other options as they are not required)
When they will have more time, they will probably improve, as I can see others offering great ideas of how to improve Enhance's backup server/options.