We explored all the options available and worked with both Percona and Amazon on the issues, but it was clear that EBS and EC2 just are not meant to handle such load. Our database is currently back running in our datacenter.
There have been a number of reports with similar results using EBS. It all depends on your particular IO profile, but since you said it was high, I encourage you to tread lightly.
If you want more information you are welcome to email me.