From the article (its conclusion) : "Amazon need to lift their game in terms of CPU performance. They offer a great service that obviously extends far beyond a simple CPU benchmark. But when you can get the same work done in Joyent significantly faster for the comparable price, you’ll get far more mileage per instance, which is ultimately going to save the dollars." Or, "Wow, Amazon sure makes bank on this EC2 stuff,…
Other than Amazon, I can only think of Google being in a position in which such an enterprise can take off.
We tried this at Loudcloud, and it turns out you need more than a bunch of smart people, lots of money, and single-minded focus towards building on-demand infrastructure.