Funny, I also work on academic sites (much smaller than arXiv) and we're looking at moving from AWS to bare metal for the same reason. The $90/TB AWS bandwidth exit tariff can be a budget killer if people write custom scripts to download all your stuff; better to slow down than 10x the monthly budget.
(I never thought about it this way, but Amazon charges less to same-day deliver a 1TB SSD drive for you to keep than it does to download a TB from AWS.)