As I am the one who made the decision to remove it, I can comment as well.
Thanks to the various PHP configurations out there, one could experience a number of problems with our backup utility that would cause it to fail either a) completely with a blank screen; or b) silently with a bad backup. It was the latter that was causing people to suffer data loss. People had lost months of data because they had relied solely on the ExpressionEngine created backups and their host had no other MySQL database backup system in place. The reasons for these failures typically were a lack of memory allocated to PHP or to MySQL for the size of the database. Also, PHP could sometimes timeout before the backup was complete. Certain setting can be modified at runtime in a PHP script, but not all of them and some hosts actually disable the ability to even change those. The curse of distributed opposed to hosted software.
To really make a fully working backup utility in ExpressionEngine, it would require using code very similar to phpMyAdmin’s, if not an almost exact duplicate. As those who have used phpMyAdmin know, even it has its limits regarding database size. Not only that, but for larger databases it can be extremely, extremely slow. Creating what amounted to an entire new module’s worth of code was not very feasible for us to do in a short order with other, larger projects on our plates. And, you know, a web host created backup, done through the MySQL command line tool is far faster, less memory intensive, and more reliable than anything done through PHP. Why hosts do not provide this service and backups on a nightly basis is beyond me. If your host does not do this already, demand it. Nothing is more precious than your site data.
Still, as Robin mentioned, we only have the links and code commented out. We have hope that we might be able to provide a more reliable backup utility in the future, one with better error reporting if PHP on the machine is simply incapable of creating a backup. We shall see though and we cannot make any promises, obviously.