What is more important to prepare for?

This is a very interesting question. I find the little everyday 'disasters' a necessity of doing business. If you can't get through the little everyday issues how could you even begin to plan for a major catastrophic event? So I would say these are at least equally important to large-scale disasters and possibly more important. How this plays out will depend on your organization. Whether you plan for large-scale disasters or not varies from organization to organization. I've worked in some that required 20 minute recovery with a restore point objective of 1 minute. That means if a disaster occurred at 1:00 AM and a disaster was declared by say 1:30 AM the system would need to be failed over by 1:50 AM with data no older than 12:59 AM. There are situations where this level of redundancy and availability is required and in some cases even more. Every organization is different. Your company may require zero downtime and be willing to invest in the infrastructure to guarantee it or you may well say we could be down for a couple of days. There are many reasons for the differences. Could be life and death (hospital, military, etc), but most likely it is monetary. Failure of an organization's operations costs time and time is money. Doesn't matter if the failure is in IT (server crash, virus, etc) or manufacturing (assembly line automation failure) if your organization can't perform its job money is lost. There is a balancing act when it comes to insurance buy too much and you waste money for an event they may not occur. Spend to little and you may not have enough resources to recover. Business Continuity works much the same way. To much and you waste resources. To little and you fail to restore fast enough or at all. There is a happy medium that must be found. Hope this answers your question. Please let me know if you need me to clarify anything.
-Fred Stuck
http://XeeSM.com/FredStuck