"The real success of the cloud like compute services so far has been in bringing small and midsize companies to market incredibly fast." Totally agreed here, and I think this is why hackers and entrepreneurs are so excited about the cloud - it does away with traditional concerns of infrastructure, allowing more focus on ideas.
Great line to pull out, and most relevant to the Y crowd for sure. What's interesting is that all of that hacker success has really made enterprises take notice and they are trying to figure out the magic too. Problem is they aren't nearly as nimble at writing new apps for this paradigm.