Given that we only have 512MB of NAND, would a utility be useful for folks that backs up the entire of the NAND to a compressed file which, if present on the left SD card could be used to restore to a known state? If people don't want to devote a few hundred megs of SD space to it they can opt not to, but given the size of SD cards these days it might be a useful option. If this archive could be created at any time by the user, it would be very good indeed - it would be pointless to have it as an option in the OS installer, but tucked away in the system menu would be more useful.
Yes, that's what I thought a few days ago as well. It would be enough to save the users home directory, username, overclocking config, etc. and if the First boot wizard finds that file, asking first if you want to do an automatic setup.