But tarsnap is indeed excellent.
The main reason is that it doesn't have a daemon that watches file changes to keep a dirty list so it'd basically DDoS your desktop every time the cronjob ran to run the backup. Also for a desktop it's nice to have an interface where you can see the differences between backups.
The I/O thing is actually a problem on servers too. See if you can spot the point in this graph where cron.daily runs:
Since your graph header says 'linode', I'm assuming your servers all run Linux, and you should take a look at ionice[1]. It adjusts the IO priority of a process like 'nice' adjusts CPU priority. For example, prefixing your call like this: "ionice -c 3 tarsnap...." will give tarsnap the lowest priority access to the drive.
1. Not a big enough company. Colin might get hit by a bus.
2. Rackspace has no incoming bandwidth charges on their cloud.