$1000 to run something like that on EC2 seems like a lot. That type of site could probably be run off one or two micro instances, and if you bought reserved instances you can get your long term costs way down.
I was running small instances - probably should have been micro. And there were definitely ways to decrease costs and stay on EC2. Heroku is free though so for me (at my scale) it seems like the best option for now.