That's not necessarily true.
We use ELB (Elastic Load Balancer) with an auto-scaling group behind it. The instances get added or removed based on the latency reported by CloudWatch/ELB. During the course of a day, the number of EC2 instances running can vary from 8 to 25.
Usually 8 is enough, but when spikes happen or when the capacity of instances to process stuff drops (which does happen in cloud-computing, based on what neighbours you have and what they are doing), then new instances are started in a matter of minutes.
And this billing by hour does save us a lot of money. Because 8 instances is enough, until it isn't and the traffic is so huge that it can choke and freeze 8 instances.
Incidental, this ability is one reason we moved off Heroku.