I have really been impressed so far with Live Mesh. I have been using it to sync some basic files between home and work.
I do have a concern about files and folders getting deleted accidentally. For example, when I first set up Live Mesh (about 3 updates ago), I originally synced my Music folder between two computers. After i messed things up while playing with renaming folders and sub-folders, it deleted all the music on my main computer. Fortunately, I had a backup, but is there a way to prevent this from happening in the future? Perhaps a way to flag files that should not be removed without verification? I could also see where a hard-drive might go bad and Live Mesh would delete the info from the other PC's synced as well. I have read about his happening with other sync type products.
I know that the Mesh team has noted that they are working to improve conflict resolution. I agree that deletion of files due to some strange issue on another device on the Mesh is bad! -steveMicrosoft MVP Windows Live / Windows Live OneCare Forum Moderator
These scenarios make me realize that people who are thinking about Live Mesh as a backup strategy could have some rude surprises. Apparently there's still a need for a backup strategy for each machine involved, and possibly MORE of a need, given the rather drastic experiences outlined here.