I wonder if this will mean cloudfront pricing will come down as well. Suddenly it's a lot cheaper to host your assets on S3, without putting cloudfront in front of it.
S3 costs are internal costs within their datacenter; Cloudfront costs start to assume costs possibly outside of their control (i.e. vendors they have to pay for their edge locations).
One could only hope. However, I don't see this changing the S3/CloudFront decision that much. I'm not sure if we're special, but on our bill, requests cover about 10% of the CloudFront total, compared to the transfer price, while requests cover just 2% of the S3 total price.
I guess it quite depends on the type of assets. On our bill in the largest region, requests are about 77% of the total price. Motivates me to look into combining assets at some point :). (base64 encoding images in CSS etc).