If you're at G, you should read the internal docs on exactly how this happens and it will be interesting.
I believe local SSDs are definitely attached to the host. They are just not exposed via NVMe ZNS hence the performance hit.
Same VM is not allocated for a variety of reasons , scheduled maintenance, proximity to other hosts on the vpc , balancing quiet and noisy neighbors so on.
It is not that the disk will always wiped , sometimes the data is still there on reboot just that there is no guarantee allowing them to freely move between hosts
https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ec2-inst...
https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ec2-inst...
There is no network in the way, you are either misinformed or thinking of a different product.