DO's policy aside... to be fair, having a single server (virtual, no less) be the only copy of anything is pretty much asking for it.
(And remember - S3 is not a sufficient backup for your EC2 storage - they're both susceptible to problems with your ASW account. Get that stuff onto disks you own as well, or at least onto a different could storage provider paid with a different credit card. Or at very least, have multiple funding sources in your AWS account, and enable 2FA on your logins)