If you try to construct a standard VPS or dedicated server plan out of EC2, you're always going to find that the bandwidth makes EC2 more expensive -- but that ignores the fact that most people don't even come close to using all their allocated bandwidth. The fact that AWS only charges for actual bandwidth used makes a big difference.
(The same applies with Tarsnap's $0.30/GB storage cost vs. fixed-plan backup pricing -- $10 for 50 GB sounds cheaper, but if people only use 5 GB of that on average, it turns out to be far more expensive.)
(The same applies with Tarsnap's $0.30/GB storage cost vs. fixed-plan backup pricing -- $10 for 50 GB sounds cheaper, but if people only use 5 GB of that on average, it turns out to be far more expensive.)