I am interested which actual model yours is. The earlier one certainly had lots of issues but later ones now reaching the 2years mark are also failing fairly regularly.
Apple certainly has used the limited serial numbers, which amounted to the first 6months worth of production to limit the fallout, from their side. But in no way was there a major change in the design at that point. In fact ones made today still use exactly the same shell and lack of cooling. Just the power supply was purchased from a different supplier and is somewhat better layout.
Almost always the issue is power supply and you can replace it yourself with an external one, if you have some basic skills at repairs.
Or I have got a list of repairers who can fix it for you.
https://sites.google.com/site/lapastenague/a-deconstruction-of-routers-and-modem s/apple-time-capsule-repairers
The cost to repair is cheaper than data recovery and at least you get your files back. Plus a working TC which will be very reliable with an external power supply. (Or a totally refurbished internal supply and the fan modified with the case to draw in cool air continuously). The poor thermal design of the original is the killer.
It is also important to manage your backups. Remember any drive can indeed die, so all your files should be held in several places. Never trust a single drive. Especially a device like the TC which has no mirrored raid and so a failure will be catastrophic.