Earlier quoted context omitted.
Bandwidth on DO is (worst case), $20.48/TB, so their 17TB usage would cost $348/month. A far cry from $5,000.
You miss the point; bandwidth from a single source != CDN. Hosting without a CDN would be extremely slow for people that were far (hops) away from DO. CDN's solve this, and other issues.
Think of it another way - what would be more valuble - RubyGems hosted on CDN, or RubyGems on DO and give a couple of grants for talent hackers to work on their gems fulltime for a few months. (ala GSoC)
Even if you ARE concerned about latency, have one download server in the US (E.g. DO), one in Europe (e.g. Hetzner) and one in SE Asia (Not sure who's cheap and good-ish there), and you'd still be a 1/4 the cost of AWS bandwidth or less.