Yes, that's the reason why I keep my data and system on separate partitions. I regularly create disk images of my system drive (while it's still in good working order), so when something goes wrong, either during an installation or through some other nastiness, I can just restore the last working configuration and re-build from there.
I usually relocate my User directory to the data partition as well - my user data will not get trashed when I restore a system image. But of course, I also back up my user data - CrashPlan is my friend...
And I write my disk images to a separate external hard drive, not the expensive SSD drive in my DAW.