That being said, it seems like the model itself is not flawed, just the execution. I've met many developers, especially in the Node community, who fundamentally believe they as software engineers should not have to spend any time learning devops.
My position is that a good software engineer today should be familiar with the full stack from frontend (SPA, javascript, html, css) to backend (sql, basic db admin, db design) and devops. Obviously, you can't become an expert in everything, but the knowledge level required to become "proficient" in these areas seems pretty achievable if you're well-versed in software engineering fundamentals.
FWIW, it took me about 4 weeks to get a "startup-ready" fully open source 3-tier stack running in EC2 with full automation using Chef (which is a whole other topic) plus continuous deployment using Jenkins. Ultimately, we'll pay more for EC2 per month upfront, and I had to absorb the upfront time hit, but now that we're setup, it's extremely easy to tweak things, and we have complete transparency.