Can you help me understand why someone would host static content on S3 versus any other host? Is it because S3 automatically scales up when traffic increases? I know almost nothing about S3.
Now, if you're serving large files and you really need more than 100Mbit sustained, S3 makes sense. But it's unquestionably a premium service for a premium price.
Now, when people say that S3 scales well, I totally agree. But why do they say that the prices are competitive, that's beyond me. Take Xirra's XS-12 storage (200€/month for 36 TB) and compare it to storing 18 TB (I assume RAID 1) on S3. 1 TB costs $95 on S3! How on Earth can you call it 'competitive'? Now, that's even without bandwidth costs. I totally agree it's a premium service for a premium price. There are plenty of cases when using S3 is just a big waste of money. (And Amazon's decision not to implement cost capping isn't helping either.)