This guy must have an incredibly large number of files if 2 XL instances running deletes for a month only cuts his S3 usage by 10%. I routinely see 700 DELETEs per second from a small EC2 instance; if performance scales linearly with CPU speed, he should be able to do 700 * 8 * 2 = 11200 DELETEs per second, or 29 billion DELETEs per month; if that's 10% of his objects, he must have 290 billion objects stored.
Except that, oops, S3 only passed 100 billion objects a couple of months ago, and at its current rate of growth is probably still under 150 billion, never mind 200 or 290 billion.
My guess is that the "FAIL" here is whatever process he's using for deleting files -- not in S3 itself.