And even then, one still needs to factor in the 'other' costs like I/O or IOPs, disk (persistent/EBS), IPs, internet and inter-region data transfer… before you understand the real cost.
And then you need to compare to other instance types (which soon will cover the full alphabet -- c, cg, cr, g, h, i, m, r, t… ) and then other providers.
You still have several unresolved issue -
1. Are your assumption on usage (cpu, I/O, internet etc) correct? Will they change? 2. How do I compare performance across providers for a given VM specification. 3. Can I get support when I need it?
And I am sure there are others
It certainly means there is room for other players who just make it simple, whether they are infrastructure folk (like DO/Linode etc) or platform plays that make the pricing understandable by the audience they are trying to target (like Heroku/Ninefold)