Any VPS plan with 2TB will be very expensive if it's SSD. Depending on price of this I'd say yes it's only good for backups or small hosting needs due to HDD storage.
I would never host any sites on anything but SSD or better.
Usually VPS with 2 TB Storage are meant for backuping and storing simple data, but it can also work as a normal VPS for website hosting. I recommend checking with the provider to make sure what you will receive in the package.