Assuming you pay your engineers a paltry $50k/yr, half of a FTE is $25k/yr. Quick calculation based on the public S3 pricing says that's 847TB of data you could be storing just with their salary. That doesn't include all the actual costs associated with running thousands of nodes - acquisition, hardware replacements, utilities and other operating costs, space, etc.
(To be honest, with that many nodes I have a hard time believing that you're not spending half a FTE just replacing dead drives.)
Not to mention the additional costs if you're actually interested in the same level of durability (target eleven 9s (99.999999999%), but last time I talked to an engineer they're still at 100% since leaving beta). Multiple DCs, transit between them...
I'm sure there's a scale at which it's worth it, but it's pretty far up there and for almost everyone S3 is a cheaper option.