So I'll make a pitch for why I think automated local backups of at least the settings are important. The client's local settings are all of the stuff that controls playback (i.e. the DSP, zones and zoneswitch, audio device settings, JRVR settings, etc.). Those (especially DSP) can get quite complicated and involve a lot of work to tune and get right. Years ago now, I was mostly using MC on a single PC, noticed the automated library backups and thought they were awesome. I promptly configured them to deposit backups on a separate drive for safety, and went about my business. When I shifted to a server client setup I didn't realize that clients don't also take any automated backups as long as they're clients. So I had a hard drive failure on a client machine where I'd done a lot of DSP work (over months) and discovered, to my dismay, that the backup I assumed was there wasn't. And I had to recapitulate all that work.
Now that I know about the issue it's easy to work around, but it seems like making no automatic client backups at all is a bit of a trap for the unwary. The simplest thing might be to do BryanC's suggestion: at startup periodically take a regular backup of the full local library before connecting to the server library. That wouldn't require distinguishing between settings and the database, etc. It's basically a programmatic version of how I work around the issue now: once in a while on clients, I switch them away from the server library to their local library, take a manual backup, and then immediately switch them back to the server's library.