Since I've retired I don't have a good off-site location but I keep the second backup in a fire and waterproof case locked inside a locked metal gun safe in my garage.
All this may sound like overkill but in the years I was responsible for technology at a large newspaper I did so much grief counseling with people who'd lost months of work because they never made a backup that it made a big impression on me. Once you get into the routine of backups and maintenance of your computer it doesn't take much time or effort and it will help you get a good night's sleep.
To your question about whether to focus on high res downloads, the reality is that most recorded music is not available in high res formats and likely never will be. Focus on the music you love, not on its resolution. Great music at 128 kbps is still great music.