been sayin for 2 years
you could make EC2 completely free and I still wouldn't want to use it. Pricing is only a small part of the problem with it. Though it's the easiest one to justify with to executives.
As a technical person I have no problem paying a premium for a quality service or product. EC2 (others are similar though EC2 is obviously most popular) is the worst of both worlds - poor product and poor pricing (the core issue is fixed instance provisioning and inability to share/oversubscribe resources - it's not a problem with the price itself it's a problem with the architecture).
I've gotten quite a few ping backs by folks that like my comments here it's been interesting.