That could be three copies at 3x the storage cost, or it could be a RAID6 or raidz2 style system where the storage cost is essentially two disks out of the storage set size (which we don't know).
You could certainly increase the required failure count by increasing the parity, but if the problem was something like all the disks in the storage system hit the same fatal disk firmware bug at the same time (as speculated elsewhere in the thread, and is unfortunately plausible), then that doesn't really help much.
I agree that this would be good as a last-ditch backup for stuff like Hetzner cloud snapshots, but the primary storage for those snapshots probably has to be ordinary RAID.
Fwiw I have a bunch of data in Hetzner Storagebox and have gotten several notices in the past few months that Storagebox would be temporarily offline for maintenance, which I assume meant raid rebuilds and/or drive swaps. The most recent of these was an "urgent" maintenance with less notice time than usual. It hasn't caused me any inconvenience, but I wonder if they have suffered a spate of drive failures recently.