The N. Virginia datacenter has been historically unreliable. I moved my personal projects to the West Coast (Oregon and N. California) and I have seen no significant issues in the past year. N. Virginia is both cheaper and closer to the center of mass of the developed world. I'm surprised Amazon hasn't managed to make it more reliable.
Realistically, it's at least in part because everyone defaults to the East region. So it's the most crowded and demanding on the system.
[1] http://huanliu.wordpress.com/2012/03/13/amazon-data-center-s...