this part is great:
<< Ok thanks so I'll try and summarize my understanding from your posts. I can look to hardwire my existing TC to my Mac and continue to do TM backups as I have. In parallel and in a month down the road or so - can purchase a new external drive - connect that directly to my Mac - ADD as a new drive to TM and have TM backup to the new drive going forward. >>
Time Machine always looks at ALL attached drives (plus recent snapshots on the boot drive) when building a backup SET to Restore from. So if older and newer backup drives are still connected, they will be seen as ONE backup set.
When the Protocol for talking to the Time Capsule goes away, you wont's be able to talk to the Time Capsule. Not for additional backups. Not for Restores, unless still running Tahoe or older.
The BACKUP SET on the Time capsule DRIVE survives.
That Backup Set can continue to be used for the foreseeable future, PROVIDED you move it to an access method where it can be seen. You can use:
• a USB enclosure directly connected to your Mac.
• with some additional setup, you could move it to a different Mac on your network.
The mere fact that its Backups.backupdb file is inside a sparse bundle disk image will not change Time Machine's ability to access that backup set.
But you MUST get it OUT of the Time Capsule, because later MacOS can not talk to a Time Capsule.