Tell me if I'm doing something wrong: my two EC2 servers both use EBS including for the root device, so I'm not using any device-attached storage. If Amazon "lost" my instance, it would appear to me to be just a reboot.
And yes, I do a nightly backup of databases, webroot, /etc and some other directories.
And yes, I do a nightly backup of databases, webroot, /etc and some other directories.