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You can already do that with normal EC2 and for a lot cheaper too because you could use a spot instance.

I can think of a bunch of other use cases. E.g. Student spinning up an instance to work on an essay or powerpoint presentation. But yes, it looks like the pricing is not by the hour :(

You can do this now. Just fire up an instance and blow it away.

I once used it to download a Steam game and tunnel it through a non-quota-counting path back to my computer.

Still need a US credit card :-(

Use a proxy server.