Being a variable cost makes me a little nervous.
Depending on what you want to use this for, I'd say the variable pricing is a good thing. I'm just working on a project which requires rather huge video files to be stored and occasionally to be accessed. To have those (around 6GB of them) hosted on a traditional ISP's product would cost a fortune (fixed price), no matter how much the files would be accessed or how long I keep them there. With S3 I can have them available and take them off whenever I want to, and I get charged a few pennies for doing so.
As I said, it's not a consumer thing, but if someone wanted to build a web-based learning application which uses lots of data, this would be perfect. The payment systems are great too, as well as their application server thing ("Elastic Compute Cloud" - EC2). Slightly off-topic, here's
Michael Mace's take on the payment system offeringWolf.