Time Capsule/Wireless Router

[Kingsmuse]

I need to get a bigger better more powerful wireless router.

I`m using a 5 year old linksys WRT54G V8 router now with a couple of Airport Express`s making the bubble larger.

My whole family is now addicted to the internet.

The kids streaming Netflix through their PS3, playing games online.
The wife using her iPad for the net and as a POS system.
Me streaming everything everywhere, Hulu, music, Netflix, Plex.

So what makes a router powerful?
Which routers should I consider for the above mentioned use?
What do I need to know?

I was seriously considering Apples Time Capsule because the lure of aTB of automatic wireless backup and the ability to control my kids usage (guest accounts) was almost too good to be true but I`ve read such mixed results online.

Apple - Time Capsule - Automatic backup for Mac and an 802.11n Wi-Fi base station

Some people have been using the old Time Machine for years without a problem but there seems to be a rather large percentage of people who buy the thing only to have it brick itself within a year.

Anyone have any experience with a Time Capsule or any recommendations on powerful routers in general?

Any help is appreciated.

 

[Digikid]

If you have less than 10 wireless devices why not just use a Apple Airport Express?

You can always buy a Western Digital External HDD for backup purposes instead.