This came up in the first entry. Netflix would apparently dispute your take on their core competency.
http://techblog.netflix.com/2010/12/four-reasons-we-choose-a...
The problems [Amazon] are trying to solve are incredibly difficult ones, but they aren’t specific to our business. Every successful internet company has to figure out great storage solutions, hardware failover, networking infrastructure, etc.
Their third argument for virtualized infrastructure was "We're not very good at predicting customer growth or device engagement", which strikes me as a compelling problem to solve. Having to change their approach to managing service dependencies and failures doesn't seem like too high a price to pay.