Thanks for the feedback. Can I ask what you would suggest as an alternative for people wanting to try the product? Our app is useless without access to the AWS APIs, and although IAM credentials could be created (as people below have), for the app to be fully functional it would require near full access permissions anyway.
We definitely need to give more before users have to enter their credentials, like a tutorial and demo video which are in the works, but as far as actually using the product, I don't see a way around it.
As noted below, this is actually very common. RightScale, Scalr, OpDemand, NewVem, and all other AWS third party tools require this information.
Not trying to say you are wrong, you're not, it's rightfully a big concern for people, but unless AWS change the way their APIs work, what are we supposed to do?