Touring Equipment

I also read somewhere online about someone who had done lots of touring and they recommended using a backpack with the straps cut off (so they dont tangle in the wheel) instead of panniers. Don't have the link and can't remember what advantages they claimed but does anyone use this set up?

http://www2.arnes.si/~ikovse/index.htm

I tried light touring with a backpack on the rack and a carradice nelson saddlebag but found that as soon as you go over about 10kg, the handling is affected quite alot and it just makes sense to have panniers. Don't think there will really be much aero advantage by having a rack top bag.