The price will bottom out eventually and Amazon knows this. What we are really seeing is an infrastructure arms race and that is why AWS is costly. They are not

The price will bottom out eventually and Amazon knows this. What we are really seeing is an infrastructure arms race and that is why AWS is costly. They are not building AWS for the individual user long term. They are building it for the enterprise. Eventually as bandwidth and computing power increases and cost decreases it may be feasible to run your personal blog out of your house or use a VPS on Digital Ocean. However, as we become a global community you will have to think about your application on that scale to be successful and that's where AWS can find longevity.