Here's the current situation: SQLA runs on StackExchange software and it is hosted by Fog Creek. According to an email from Joel Spolsky: "It is actually the same as Fog Creek hosting (it’s on the same infrastructure as what is described in that article)."

That takes care of part of SQLA's backup and recovery strategy: We trust Fog Creek, they operate on a far higher plane than Magnolia ever did.

(Magnolia was named after the Greek god of cluelessness, and it has now been re-launched as " Gnolia" which is Latin for "missed business opportunity".)

The second part of SQLA's strategy is the "verify" part of "trust but verify". It is expected that before the StackExchange service goes live (it is in Beta now, just like SQLA is), the "Download Your StackExchange Database" site management option will be implemented.

Having said all that, there are gaps, like "Will it be possible to upload the StackExchange data we downloaded?"

And, "How would we migrate to a different hosting service?"

Don't know, do care (very much), too early to know the answers.