gp2 disks get 3 iops per gig "free", bursting up to 3k. (They don't burst after 1 tb, because your baseline performance is higher than the burst rate.) io1 is 25% more expensive per-gb, and you pay by the IOPS on top of that.
A 175gb gp2 disk will give you 525 IOPS baseline, at $17.50 a month. I'm guessing his volume is about 40gb, doing math backwards from his bottlenecked IOPS; a 40gb io1 with 500 IOPS will cost you $83.75 a month! And on top of that, AWS will cap you hard at that 500 IOPS; the gp2 can still burst if needed.
I know of two general cases where io1 disks are worthwhile: if you need more than 10k IOPS, or if you have very high IO requirements but very stable disk space usage (e.g. high-performance RRDs). Crack open Excel and do the math; it's worth the five minutes to check.
(Also, your burst balance is available as a Cloudwatch metric, as I recall! Set alarms on that shit!)