The ec2 stuff is transparent because we aren't trying to hide the underlying platform. You can still utilize the full power of AWS form our system, you just don't have to unless you really want to. Sane defaults but major flexibility is one of the goals of this platform. That being said you may be right and we may need a tiered pricing system tha includes certain amounts of bandwidth and storage for a known monthly price. Time will tell as people start top use the platform.

Also you can run multiple applications on one solo instance. Since you have 1.7 gigs of ram you can run 3-6 little apps pretty easily if you use the apache + passenger stack.