Whenever I back up an Amiga so I can put a new drive in it, I make an uncompressed LHA file of the entire drive contents and copy it to a SD card with a PCMCIA card reader. Then I prepare and format the new drive in the Amiga using a floppy disk I have prepared with PFS3, HDInstTools, Fat95, CompactFlash.device, LHA and some other bits. After the partitions are formatted, I simply extract the LHA back onto the fresh partition.
I'm not sure why people make things more complicated by swapping drives around and using Windows and UAE, perhaps it's because they don't have a floppy disk handy.
I have been using CF cards in my CD32, A1200 and A600 for years and I swear by them. I have also seen people with solid state drives in their Amiga and they're happy with them too. I suppose you buy what you can afford. I recently finally swapped my 2GB CF for a 8GB one because I was constantly shuffling things around on my drive as it was 99-100% full all the time. I never thought I'd need so much space but eventually I did fill it up. There are a lot of games, software, and media to put on there. I like having 8GB now because I can store several of my favourite musical pieces in high quality 8SVX format, so I can listen to a long playlist of music and it's not CPU-intensive like MP3s.