Pay attention to what Intel said in the IDF presentation. They saw 5% hard drive failures per year in their "internal" IT records drop to less than 1% SSD failures per year as they migrated from hard drives to SSDs.
A big portion of this advantage for them was because 80% or so of their employees use laptops/notbooks/netbooks whatever you want to call them. Dropping, bumping, overheating, etetera cause failures of hard drives in laptops and such. Of course every hard drive has to be packed and shipped to you before you can use it and no matter how careful you are with a hard drive you don't know how UPS/FedEx/shipper joe/stock boy fred/etcetera treated that drive. Even if you take the shock damage out, thermal issues are significant. Once you take Shock and Heat out of the equation (which all SSDs do) you get down to reliability of the flash memory, the controller, and other circuits on the SSD "motherboard".
The significance of this data is all relative. Good SSDs are more reliable than good hard drives (because they don't have to worry about shock or heat). Bad SSDs are worse than good hard drives (though I can't say exactly why, it varies from one model/brand to another).
One of the downsides to cheaper sandforce drives is that manufacturers (knowing that the controller is more robust in dealing with failed flash) feel free to use lower quality flash and/or have less of it held in reserve for wear leveling/bad block relocation. If the sandforce controller was paired with the same quality flash as the Intel/C300 drives they would fail less but they would also be more expensive.
Lets, be clear, if you gave me free of charge a 120GB G.SKILL Phoenix/Phoenix Pro or Mushkin Enhanced Callisto Deluxe I'd be reinstalling windows on it first thing and it would be my new boot drive and I'd be happy to do it. It's just if I'm going to spend my own money on it I'm going to take the route that is less likely to waste money. I'll take the drive that has 1/5th the failures or 1/3th the failures instead.
Again these numbers aren't here to scare you away from SSDs, they are here to help you make an informed decision on which SSD to buy.
Yes you should switch from hard drives to SSDs, No you shouldn't stop making backups. Any drive can fail.