> Hundreds of terabytes a day is really not that much
How much would it cost to move this across boxes in EC2? I actually don't know, that's not a rhetorical question. A lot of our servers have 10-40gbit links that we saturate for minutes/hours at a time, which I suspect would be expensive without the kind of topology optimization we do in our datacenters.
> Also surprised about latency
We've spent a surprising amount of money reducing latency :) We're not a high frequency trading firm or anything, but an extra 1ms (say) between datacenters is generally bad for us and measurably reduces performance of some systems.
> Reliability is "solved" at low levels
To whatever extent this may be true, it's certainly not true for cloud providers. One obvious example is that EC2 has "scheduled maintenance events" where they force you to reboot your box. This would cost us a lot of money (mostly in dev time, to work around it).
Also, multi-second network dropouts in big cloud datacenters are not uncommon (in my limited experience), but that would be really bad for us. We have millisecond-scale failover with 2x or 3x redundancy on important systems.