Or maybe you're just doing a subset of your data, in which case I don't see how snapshotting is such a big win. Nice to have, but not important in the least if you are just doing a small subset of your data. True, it saves a few pennies on transfer charges, but you could save that much by doing the upload to S3 yourself.
My other concern with this is that if the tarsnap server ever goes away, customers risk losing their data, since the server maintains the mapping of S3 objects to blobs. That's worrying. Assurances are not mechanisms.