This is 100% accurate. My point was that S3 is good at being scalable infinitely, but you can use low-end hardware to scale up to point x for storage. This will be small and fail quickly when it comes to media companies, but for most web apps who need an image host or cdn, it'll go a long way at a fraction of what aws charges. My problem I guess is that I see younger companies looking at aws, linode and rackspace as the _only_ solution and I think that's unwise.

I realize I'm slowly going offtopic, sorry! AWS still rocks and I wish I could use my amazon gift cards there.