Does S3 really have that high of a latency? So high that —— if you run a static file several in an EC2, would that be faster than S3?
It will depend on your needs though, since some use cases won't want to trade off the scalability of S3's ability to serve arbitrary amounts of throughput.
You are limited anyway by the network capacity of the instance you are fetching the data from .
[0]: https://aws.amazon.com/s3/storage-classes/express-one-zone/
Even for any single query it will likely run on multiple nodes with distributed workers gathering and processing data from storage layer, that is whole idea behind MapReduce after all.