Ricky, you are correct about basing the TLog backups on how much data loss is acceptable.

In my case, the actual data loss customers agree too (not my call) is up to a *DAY* as we only promise once a day full / log backups. Leaving aside what that infrequent of a backup does to the TLog, *I* wasn't happy with it and modified the schedule.

Also in my case, our DBs are not frequently altered, they're much more read heavy with moderate to little insert / update / deletes, so two hours data loss is not a crisis.