the auto-scaling stuff is--largely--already here, though, while I think this *sounds* like a great deal and something that we want, I'm not sure that it is.
In point of fact there are now, more than ever, more small and moderate sites and applications that can easily live on a very small number of persistent instances (1-5), and the biggest gain of virtualization is that these small number of servers are now *incredibly cheep*. Is automating large amounts of potential infrastructure a good idea? Is running fully dynamic database-driven sites the best way to serve mostly static information? Is creating an environment where, instead of killing your server and running up your bandwidth bill, a DDoS attack dosen't break your system, but increase your infrastructure costs by a hundred times?