Nice thing. Now people will have less motivation to fire from Starbucks - i believe in this case the employee will need to pay by himself. Additionally, managers will be able to push employees to work harder and therefore the amount workers, required to work in one place might be reduced.
Genius!
i think AWS is good, when you're not sure if you will use all resources of your servers or need scalability. If you know your growth rate, what type of resources are used, etc. it will be cheaper to have servers in a datacenter instead of using AWS. Many companies, upon growing, starting to rent a space in datacenter or even build their own.