The downside is that the access methods for blocks mean some operations are more computationally and bandwidth intensive, meaning you will get fewer IOPS and less sustained throughput without paying more money. In addition, there is always going to be a bit more latency when going over the network versus a SAS RAID card.
As with all things in life, it's a tradeoff. If you look at other large providers' (GCE, DO at least) network storage offering, you'll also see a significant performance regression from local SSD.