That's true, but how many services get this right in practice? It's not easy to ensure all instances will perform well in case of failover. A lot of apps are running on a single instance and depend on Amazon's fairly good track record.
If you are relying on a single instance and depending on Amazon's track record, you're doing it wrong.
I see an SLA of 99.95%(~4hrs/year) on the site but cloudharmony.com/status has AWS at the top. Googling average ec2 uptime has people posting instances running for years with nothing.