I'm just starting to use EC2 myself so not an expert, but Amazon's own documentation says:
we recommend that you use the local instance store for temporary data and, for data requiring a higher level of durability, we recommend using Amazon EBS volumes or backing up the data to Amazon S3.
Emphasis mine.
I do more data analysis than web hosting, so persistence doesn't matter as much to me as it might for a web site. Given the distinction made by Amazon itself, I wouldn't assume that EBS is right for everyone.
I'll try to remember to weigh in again after I've used both.