I tried to Love AWS, but right now I just like their effort. There is something organically that feels right about the way DO has positioned themselves, they can always scale pricing based on additional features added. Yes, there margin is thin, but the the fact that the service is easy to use means less user support issues when adding them at 500 per day.
Some estimate AWS's margins are up around 80% [1]
Competition, low cost hardware, building their own stack, open source etc. mean better pricing for us users
[0] http://ycharts.com/companies/RAX/gross_profit_margin
[1] http://blog.profitbricks.com/the-fake-cloud-price-war/