EC2 is too unreliable for business use
I don't know if my company has just been unlucky, but aside from this major outage (which is still classed by Amazon as a "performance issue!") we often have problems with servers locking up for no reason. When this happens, all you can do is reboot it and hope that fixes it. Disks sometimes just don't attach properly. It simply isn't a reliable technology.
You say it's not much different to running on another virtual machine, but if I had hosting on another company's server and the power went out, I think they would get the power back and restart the server. Amazon on the otherhand still haven't fixed many of the downed servers two days after the event. Their advice for recovering data just isn't working in many cases, as you can see from their own forum.
You say we have to do the work for the redunancy, but if it's just people not setting things up correctly, why did all of Amazon's own sites in Europe go down for about an hour when this all happened?
The truth is, Amazon say mirror stuff in different zones and you will be fine, and use their own DBMS. But although they don't admit it, it wasn't just one zone that was affected and their DBMS had serious problems too.
I can't speak for other cloud systems, but I think EC2 is not suitable for critical business applications.