A cluster of Pis is far cheaper than a cluster of just about anything else, and you don't need raw power just to teach people with.
Granted, that's no substitute if you need something with physical I/O ports, but if you want to learn how to set up a real compute cluster, EC2 is a more realistic environment.
Those two aspects combined more than make up for the really trivial cost Pi's may cost over micro EC2 instances unless you are really interested in pinching pennies above other considerations.
Model A should be out in the next few weeks, which will make that $25.
Now, programming it might be a mindfuck, but that's another story.
The pi's real value is in the hardware decoder, the hdmi out, the gpio pins, and size of the device.
Nobody is going to do run production jobs on a cluster like this. A virtual cluster on a single i7 performs subtly different in many ways and will be unable to illustrate many real world problems. So for education it's simply not the same thing.
When the 16-core Parallella[1] comes out, it'll be interesting to use it to answer the same sorts of questions.
Canonical builds 40 processor arm build cluster: (http://news.ycombinator.com/item?id=2647544)
A Lackluster hack cluster of arm machines: (http://dontstuffbeansupyournose.com/2012/03/01/a-lackluster-...)