What a refurbished hard disk does not give you:
- Redundant storage
- Redundant power/network/etc.
- Geographic distribution
- A network API
- Any networking, or uplinks at all
- Access control
- A team ensuring the reliability and security of your data
- Global network of datacenters and pops
- Integration with other cloud services
All that and Amazon et al. do not store your 1TB of data in a single refurbished hard disk. This is beyond non-sense.
Sure, some of these costs are amortized, but I still think this is a lame comparison. If all you wanted was at-cost block storage with crappy reliability and speed, you could probably accomplish that in easier ways.