This seems to be such an obvious feature that I'm surprised they are only adding this now. I'm not an expert in hypervisors or anything like that and so I'm wondering what was stopping them from adding it in the past?
I get this sense they are very conservative in their feature set there? Nested VMs for example are supposed in GCP, Azure and Oracle clouds I think, but not AWS. VM migration too I think exists in GCP at least, but not AWS. It's interesting.
I wouldn't assume that VM migration does not exist in AWS. The overall design and implementation of Google's infrastructure somewhat mandated the development live migration support from day one. AWS was designed and built differently, and some types of events that force live migration in GCE do not exist in AWS.
One specific example from Google's VM Live Migration At Scale paper [1] is "Regular maintenance on the power infrastructure in our data centers requires powering down subsets of machines for extended periods of time". The power infrastructure at AWS is designed to be redundant and concurrently maintainable, which removes a significant need for workload mobility within the datacenter.
Personally, I think it was a very good idea to turn the thing that had to be built to launch into a marketed differentiated feature. But that doesn't mean that AWS doesn't have an ability to live migrate some workloads if it is able to do so without disrupting customers, or if it delivers a better experience than alternatives (e.g., instance degrade notices).