"After all, while TM is very cool, you can completely do it yourself with rsync."
Not quite true. According to
http://arstechnica.com/reviews/os/mac-os-x-10-5.ars/7 TimeMachine uses the new FSEvents architecture: TimeMachine does not rescan your entire Harddisk. This would take quite some resources. Instead, it registers to FSEvents sent by the filesystem whenever something new happens.
You can't do this with rsync, rsync has to rescan the entire harddrive. Which is not that bad for a daily backup. On my servers I use the Open Source Dirvish project to do this, it works very well.
What an rsync solution has in common with TimeMachine is the way the files are stored in the backup using hard links.
Cheers
Florian