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I've been playing around with something around this lately, and have found that S3 works pretty well as-is - throw your stuff into a bucket, configure it for a website, and you're pretty much done. The performance is acceptable (IMO) and it's cheap (12c/gb transferred, about the same per gb stored/month). You don't really get too much control though (though you can set bucket policies that IIRC can filter on IP, referrer, host headers).

At the moment, I've gotten to the point where I have Varnish running on an EC2 micro instance serving data from S3 (I have a couple of reqs that prevent S3 from supporting my usecase out of the box [mostly to do with having too many buckets, not being able to use bucket folders]). There are issues I need to resolve with invalidation as well as the latency of the first request with this approach, but it does look promising.




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