Earlier quoted context omitted.
Is that a term? "Cost of service attack" ? If not, let's coin it :) Cost-of-service-attack: Consuming bandwidth or other resources in cloud based solutions to drive up the cost of running the service. Very easy when the cost is so tightly coupled with the resource use...
I believe this kind of attack is already referred to as EDoS (Economic Denial of Service/Sustainability) - basically killing of a service through bankruptcy. This is why most cloud services have a customisable limit on how many virtual servers can be booted automatically, a solution is yet to be found for protecting S3.
"[snip]..one might envision that instead of worrying about a lack of resources, the elasticity of the cloud could actually provide a surplus of compute, network and storage utility that could be just as bad as a deficit"
http://rationalsecurity.typepad.com/blog/2009/01/a-couple-of...