No. That's just another FUD article. What the practical upshot of that clause is is that if you are going to troll Amazon with your patent portfolio you can't be a customer at the same time. They do not require you to 'give up your IP', either entirely or in part. Copyright is still what it was before, your patents are still yours.

And all this subject to interpretation by a competent judge.

The hypocrisy lies of course in Amazon patenting just about every dumb 'innovation' that they came up with in the early days of the web (recall the 1-click shopping patent). So for Amazon to want to be protected pre-emptively against customer lawsuits over patents is silly.

I also highly doubt a judge would honor their survival clause, but it's up to Amazon to put in their contracts whatever they want, it's up to a judge to decide if it holds water or not. So until this has been litigated it doesn't mean a whole lot.

>>>if you are going to troll Amazon ...

Probably consistent with what you said, but just to clarify, I think the AWS license also applies to suits against AWS customers. The license states "...you will not assert... against us or any of our ... customers... any patent infringement or other intellectual property infringement claim regarding any Service Offerings you have used."

It's difficult to imagine how one AWS customer would be able to use this to defend a patent suit from another AWS customer though, since they are not a party to the contract between Amazon and the patent holder that conveys the license. You'd probably have to get Amazon to intervene in your suit.