Android interfaces with Google directly for Gmail, Calendar, and Contacts. For the G1 specifically a microsd card is required and all stuff like photos, music, etc are kept on there. That is all.
I know, but how can we be sure Google is backing all the contacts, gmail, the calendar? -- My BLOG! Black Friday Ads
There are apps to backup all of your email/sms/mms/contacts/etc to your sd card.
i'm not worried about it. if gmail goes down I at least have a SLA to fall back on. I have Google Apps through my College and thats what I use on my phone to login.