These are things developers definitely should know.
I do agree that "EVERY programmer should know.." with regards to some specific software package or service is silly. Given that there are a million ways to provide services similar to AWS, and AWS is really only a means to an end -- I don't get why every programmer should be aware of the specifics.
Latency is one those things that hits almost all of CS. AWS isn't. "Things all programmers should know about AWS.." is , in my opinion, similar to saying something like "Things every programmer should know about the Python GIL." , it includes exactly the reason WHY every programmer needs not know it.
Not a amazon service user? Forget about AWS.
Not a python user? Who cares about the GIL.
I also agree that your linked PDF is overboard -- but it's one of those things that looks overboard now, but that kind of innate cpu/memory knowledge would have been a lot more useful when lower level languages were more widely used. Touching memory is just one of those things that seems to be on its' way out, and I, for one, am thankful for that.
...that's a terrible example, 2007 link nothwithstanding. Nobody cares about AWS unless they use it (and many don't, either because they use something else, or because they're in a different domain), but awareness of true costs of what you're _actually_ doing can be the difference between O(n) and O(n^2).