When the host dies with local storage, the VM is dead. With EBS it's not, since it simply can be booted up on another host. EBS is also replicated accross multiple hosts.
Since I’m a freelance programmer, I mainly work on small-to-medium-sized projects, so I don’t know much about this kind of infrastructure programming.
When I think of "SAN" I think of Fibre Channel, which can be quite fast. EBS sounds more like iSCSI.