There was a good post by Bryan Cantrill after one of those really bad outages[3]. While this post is from an AWS competitor, the arguments about the reliability of network storage are sound.
While the trend by AWS has been to move away from ephemeral storage, it doesn't seem like they are working to completely kill it off. d2 and i2 fill a lot of our storage node needs. For our compute nodes I could see us moving to a model of booting off ebs and then pivot rooting into a ramdisk root fs so nothing would touch ebs after boot.
[1]: https://aws.amazon.com/message/67457/ [2]: http://www.agilesysadmin.net/ec2-outage-lessons [3]: https://www.joyent.com/blog/on-cascading-failures-and-amazon...
But they do seem to have figured it out, hasn't been the SPOF it used to be in half a decade now.
// Knock wood, etc.
Anyway! Provisioned IOPS are sufficient for most workloads; if they're not for yours, you might consider a ramdisk (expensive) or going bare metal on physical servers (cheap).
All that said, I expect the next generation will have at least one type with a mid-range local SSD available if only because there is real demand for it. But it's not going to be cheaper than using EBS, unless you use most of the disk.
Also, complementing toomuchtodo's comment, there's also now EBS types focused on almost all kinds of workloads: sc1 for cold data/archiving, st1 for workloads optimized for sequential scans (a Confluent benchmark even reported that Kafka ran better with st1 EBS than instance storage), io1/PIOPS for databases and gp2 for everything else.
The main driver is that they don't need to have instance storage - that is, they can uncouple the storage from their compute nodes entirely and keep it on SAN somewhere.