I don't use this particular service but for me AWS generally wins. It's got rough edges but they've got everything covered. If I wanted to run a highly scalable web application then I could easily host parts of it with other providers but I would probably still end up using a particular AWS service somewhere in the pipeline. And if I need one AWS service then I may as well use six. It turns out their pricing is highly competitive and the service I've experienced is well within the tolerances I would expect for the money. You literally pay for what you get. For smaller stuff it's still probably cheaper to colo or host it yourself but for projects where you need the potential to scale every aspect, then AWS is great.
I don't really understand what VMWare are complaining about. What are VMWare's object storage rates or DNS failover charges? They're offering a product which allows a provider to theoretically offer similar services to AWS. Amazon pumps it right into the end developer's face with a standard API. Wish the official docs were better though.