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John C.
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I’ve not used EC2, but I’ve been using Amazon S3 for a couple of years and have never experienced a problem. I haven’t heard of any problems with data loss either (unless you count people who lose their secret keys!).

The biggest fault with the Amazon Cloud Computing platforms, in my mind, is that they are designed by Engineers for Engineers – it’s not easy for a regular person to sift through all the information and work out how to use it. Unless you have a technical mind, and time to work it out, you may be better off with one of the companies that focuses more on the consumer market.

Hope that helps.