The 75% reduction in indexed storage cost is a big win, from my perspective.
At $0.25 / GB / month it's now roughly 2.5x the cost of EBS disk-based storage, and you're only charged for data as you use it, with no need to reserve it ahead of time.
The alternative of running postgres or mongodb on an ebs-backed ec2 instance just got a lot less attractive to me.
Way to go, Amazon!