This feels like a step backwards to me, nevermind how necessary it may be. The magic was paying only for what you use on super bursty workloads. Now this is like throwing your hands up and saying the users bursts are too big for AWS.
Answer could help us try something new. We currently use large google app engine 'apps' after failing to get functions to scale quick enough (and hit limits). we have SUPER bursty traffic that needs to scale up to hundreds of instances very fast.