I agree with you, but would point out that CmdrTaco hosts his new site (that got front page on HN a few times) on a Micro on AWS.
He does a serious amount of caching (obviously) and offloaded all assets to S3, but it looks like it is still possible.
FWIW, I am still skeptical given the amount of complaints you see about the Micros on the EC2 forums regularly. He could have just gotten lucky I suppose (as far as his neighbors on the host).