This would basically be the game-changer for building backends on lambda.
The absolute key and most valuable piece in most backends is the persistent datastore. I absolutely want to build functional stateless business logic on lambda, but I absolutely will not, no matter the gain from not having to manage servers, have my database be dynamodb or any other non-RDBMS, for any serious application in 2017.
If it weren't true, then of course I might consider using DynamoDB or similar. But I think these situations are few and far between.
I'm often wrong though and happy to learn about some counter examples if you have any / have my assumptions corrected.
The "interesting" part is how to secure user credentials to login to the RDS instance, and manage connection pools etc, but it's not that difficult
You can run your RDS instances and your Lambda's in the same private VPC. It doesn't secure your credentials per se, but it does prevent anyone else from accessing your database with Lambda.