Just a quick datapoint for you on EC2 vs SSD... we tried restoring a 30GB pgsql database to a Large EC2 with RAID0'd EBS stores for testing purposes. It took ~4 days.
I tried doing the same thing on a Macbook Pro i7/SSD and it took ~1 hour.
EBS performance is unreliable and miserable.
There, fixed that for you.
However, EBS also has a couple things going for it. Namely: easy snapshots, fast/seamless provisioning (need another 1T?), mobility (need that volume on another instance?) and quite a fair price point when you take all that into account.
Sure, within the boundaries of your disk array. Assuming a non-trivial size you'll need 1-2 fulltime people to run and scale that array, plus a nice chunk of investment into hardware.
I tried doing the same thing on a Macbook Pro i7/SSD and it took ~1 hour.
EBS disk performance is reliable, but miserable.