You're right, my math
was flawed, though possibly not in the way you were implying, because:
I added a T1 ($250/month) to a building rental ($2000/month), and then said that they'd have $10,000/month left over.
Why would I do such a thing? Why, so that:
They could upgrade to redundant DS3s (or better!)
They could buy extra drives!
They could pay someone to live within a few miles and carry a cell phone that accepts text messages!
...etc.
Doubly funny, to me, is that "disk failure" is being mentioned in the comments on an article about how all of their disks failed all at once. So, no, I certainly did not forget about disk failure. Indeed it's one of the reasons that I'd rather not host certain things as EC2 instances.
As far as scalability: Well, how far would 67TB carry you? Because you could deploy 67TB every single month and still have money left over. [1]
To get to the meat of my argument: I think that what's both great and horrible about EC2-like services is that they allow programmers to deploy Really Big Things without having to employ or deal with system administrators.
As a result, it's a solution that's being misapplied in some cases.
[1]: http://blog.backblaze.com/2009/09/01/petabytes-on-a-budget-h... -- it even has pretty pictures