I use VPS servers and run my own site using wordpress for blogging, as well as some other software, and I encountered a situation similar to this with VPSLand (which, by the way, is the worst VPS hosting service I have ever used). I have since changed providers, obviously.
After having already been through several periods of unexplained downtime, and an instance where the VPS was unexpectedly rolled back due to some unexplained problems (you can see where this is going), my VPS seemed to be permanently down, and customer service would not, or could not, assist me.
I had been using their backup service, but I could not restore the VPS to a running state with the tools I was provided. However, I figured out that I could put the VPS in maintenance mode and I could atleast SSH to it, so I used WinSCP across SSH to download my files and databases.
Bottom line. While I didn't lose anything, I learned the hard way (which was a failure on my part since I am a systems administrator) that you can't become complacent if you care about your data when you don't control the environment. I trusted VPSLand's administrators to safeguard my data and they failed. If I had not discovered the maintenance mode option, I would have lost everything. The only way I can ensure my data is safe is to back it up myself. I eventually wrote a VBscript that connects and downloads all of the web and MySQL directories to my machine at home on a regular basis.
I know all situations are different, but if you can backup your data yourself in any way... even if it's just additional copies on some form of removable media, it's best to do it. Do not trust that whatever service you are paying for will ensure that it's never lost. The company might have a great looking website and have well written policies, but if you don't know what's going on behind the scenes, you don't really know anything about the company hosting your data. Go the extra mile and safeguard your data yourself.