If you've got a pre-baked application AMI, are using EBS-backed instances, and are starting them with auto-scaling or health-checks rather than manually using the console, then no, you really can have new instances up in a couple of seconds.
Mind you, the key (to getting a high ROI from AWS) isn't scaling up on a dime. It's scaling down on a dime, whenever your load decreases for even a minute or two, knowing you can just scale right back up. Being able to run with literally no paid compute-hours spent sitting around doing nothing waiting for a task can save you a rather large amount of money, usually quite easily compensating for that 30-40% AWS surcharge.