You can copy the database files and/or the entire thing off to somewhere else if you want to. Apart from steps 3 & 6 (which are standard iTunes processes) everything else is reversible and the actions should be relatively quick to implement. (Quckier than it takes to write out and proof read! )
The consolidate only process, which will take longer, and mean you have to clean up afterwards, would be to use File > Library > Organize Library... and tick Consoldiate Files then click OK. Once complete you would rename \Volumes\Backup\Music and test the library before deleting the renamed folder.
Actually now that I write it out that does sound a lot easier. I've just got used to writing instructions for cases when consolidating isn't possible, or isn't all that needs to be done.