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Does using version control system make backups unnecessary?
The only situation where the monthly backup (from my recommended case) comes into play is if there is simultaneously an issue with both Dropbox and Bitbucket (or more likely, your own Internet connection) AND a hardware failure or theft. Since Dropbox is backed up continuously while you're connected to the Internet, the odds are very high that you'll not lose more than maybe the last save worth of work. And since you're pushing to Bitbucket after each session, even if Dropbox fails or is compromised, you can pull anything you need down from Bitbucket.
Very simple markup language for writing fiction
I would like to see the markup that you end up using. Could you post an answer here with the tools, once you've posted them to bitbucket?