Just thinking out loud. What if Amazon Web Services LLC offered a virtual machine service that was as dirt cheap and simple as S3 and SQS? A buck a virtual network, a dime a VM instantiation (10 GB disk, 512 MB RAM, 1GHz P4 performance), bandwidth at the same cost as S3 (maybe a discount for using S3 from a VM). A great web based specing and ordering experience with 4 or 5 really obvious base installations (including all of the top Web application stacks) tuned for building Amazon Web Services apps.
Might not be differentiated enough from the Virtual Private Server providers (e.g. Rimuhosting) for Amazon to pursue, but it would be a nice computational complement to S3 and SQS.
Now that would be game changing!!