Still this is far less simple than Google's "sustained use" discounts, where price automatically drops when I have more constant use pattern. Here I still need to plan upfront, assume my future usage patterns. It seems easier, but in fact you need to make the same decisions as previously.
I also wonder what happens if I make "no upfront" reservation and don't use it? If nothing - why would I use on-demand, while I always can do reservation without upfront?