Thank you for the link! Their offering looks pretty solid; they are apparently using SSDs for all disk space which is one of the first I've seen doing this while using an 'on-demand' pricing model that's competitive with Linode.
Some key things I saw when I briefly checked it out:
-Their answers  regarding bandwidth bursting and fair bandwidth usage / sharing policies  is slightly ambiguous, or worrisome at least IMO, although maybe I'm just a cynic heh.
-They do include CPU bursting  similar to Linode.
-No private IP addresses . No mention of IPv6 either but perhaps they do support it? =(
-Their 'Features' page looks great but I can't find more specific information & details on some of the things mentioned such as:
A) US & Europe data center; is casually mentioned as being New York & Amsterdam only though.
B) The ability to upgrade a 'Droplet' VM to a dedicated instance that can use all the host resources.
C) No mention of VM resize speed / more info on the 'private network' aspects.
As nice as their offering looks, their TOS prohibits hosting content that is "pornographic, obscene, fraudulent, or discriminatory, including any containing nudity, erotica, profanity, or obscenities" which is extremely restrictive. If you host a website that allows user content, someone posting the word "shit" or posting nude art photography could get your account closed. No thanks.
That is true. Amazon has been in cloud hosting space for a long time to cover almost all areas required to run a server. I am rooting for competitors though who could offer more services. That should bring interesting services and drive down cost even further.
As far as I am concerned, Reserved Instances are the way to go, if you consider to get to be be a heavy user. I opened a spreadsheet recently on my own startup idea, and with Reserved Instances Amazon EC2 got very competitive.