Pretty much. Now, for a Genie, you can use an external drive setup with RAID, so that one hard drive failure doesn't cause data loss.
Currently, even here there is a single point of failure as recordings are locked to a particular DVR. However there are rumors that this will be changing.
That whole notion scares me. That's why I just have a whole bunch of DVRs with redundant recordings.
Is there a max size on the external drive? Still 2 TB?