Yes, the key features are the flexibility and the ability to mix and match drives. You can start with 2 drives, and it gives you the same space as if you had them mirrored. Then you add a third drive, and it gives you the space you'd have with a 3-drive RAID 5. Add a 4th, and it gives you the space as if you had a 4-drive RAID 5.
And all this is done automatically. With ordinary RAID you'd often have to back up everything, move it off, delete the RAID sets, and reconstruct. So this kind of flexibility IS a really nice thing. Is this product the be-all end-all? No. It's pretty slow, it's USB 2 (i.e. no NAS), etc. Still, for a big chunk of backup storage I'd use this thing over some janky La Cie drives any day (I know lots of people who have had issues). I personally use an Infrant ReadyNAS because I like the NAS ability, but it's not as flexible as the Drobo.
But the Drobo is WAY nicer to manage than a box full of drives in firewire enclosures where you have to wonder what's on which drive... maybe you write the contents in felt tip pen on the outside. Or put a big sticky label on there. I've seen it