RAID, including RAID5, works just fine for millions of applications around the world. It's a simple fact.
Where it doesn't work is when people abuse it because they don't understand what RAID is for (which isn't backup), or when it's used in combination with cheap and nasty consumer-grade hardware while expecting enterprise-grade reliability.
Yup. And it's worked fine for me as I explained. Again of course, it's not 100% fail safe.
But yes, the probability of data loss, if correctly set up and not abused as you said, is still much lower than using a single drive. I'm not taking user mistakes into account either here. That's also what back-ups are for. As I said, my use case is specific, as the largest chunk of my data (in size) is almost read-only, so the probability of messing it up, if not from a hardware issue, is pretty low. Of course I back up frequently all my work files (but it's a lot smaller overall, certainly not TBytes of data.)
In over ten years of use, I never had to recover from a back-up, despite again a drive failure. I'm not advocating NOT doing any back-up. What I'm saying here though, is that for a limited use case such as mine, you can definitely back up a lot less frequently, and still expect your data to be reasonaly safe. I do back up critical data frequently, so that's pretty much all a matter of data criticity and probability of loss. I want a low probability, but I'm ready to accept the risk. I wouldn't do that for a company, nor again for my critical data. But even if I'm ready to accept some risk for my less criticical data, I still don't want a single point of failure.
Now it's also all related to the practicality of frequently backing up several TB of data. I for one don't want to use cloud backup, and my DSL connection would make that not very practical anyway (it would probably take days for a full backup.)
But getting back to RAID, as I said, that's what I built like 10 years ago. Things have changed. Hardware has evolved, my views as well. So I'm ready to take another approach, but having significant experience with handling data now, I'm even ready to take a much simpler approach. Just curious what others typically do. These days, I'm thinking it may make more sense (and would draw less power) not to use RAID, use a single drive, and replicate it on a regular basis (that would look like backing up), swapping it every time. I dont really mind having to do this manually, as it's a forced opportunity to check drive health, data integrity, etc. (Again I would not advocate doing that for a larger organization, that wouldn't scale up.)
As I said earlier, my goal in terms of hardware/power consumption is also very spartan. My current NAS is drawing ~30W on idle (and usually not much more than 60W when streaming data over the network), and I'm now looking for less. So anything in the order of 250W or over is out of the question.