Earlier quoted context omitted.
Only fools would want a persistent filesystem for their OS!
How is S3 not persistent...
"An EC2 instance may be launched with a choice of two types of storage for its boot disk or "root device". The first option is a local "instance-store" disk as a root device (originally the only choice). The second option is to use an EBS volume as a root device.
Instance-store volumes are temporary storage, which survive rebooting an EC2 instance, but when the instance is terminated (e.g., by an API call, or due to a failure), this store is lost." (Emphasis mine)
Most choose the EBS type of instance now, because having the OS on a persistent storage device is more convenient for typical server scenarios (as you might imagine).
http://en.wikipedia.org/wiki/Amazon_Elastic_Compute_Cloud#Pe...