I think the gp was saying that the brand— as in, the perception of AWS— will suffer, not the actual services.
Anyone with an ounce of server knowledge would know it's impossible to keep a website up for 100% of the time, so downtime at Amazon is understandable, but maybe the average Joe Manager is deciding between Rackspace and AWS and happens to visit amazon.com during this downtime. "If Amazon can't even keep their bread-and-butter running, how can I trust them with something like AWS?" he might say.
> Anyone with an ounce of server knowledge would know it's impossible to keep a website up for 100% of the time
As far as I know Google has 100% uptime, so it's not impossible. May not be 100% for every geographical location but that's partly because of things Google cannot control nor make redundant.
I was at the AWS Summit in NYC last week and Werner claims that they only completed the transition of retail to AWS fairly recently: http://www.youtube.com/watch?v=oo1W92Teqx4
Conversely, when AWS had issues, Amazon.com was not impacted.
Amazon.com != AWS. I'm curious to know when AWS or Amazon.com innovations impact each other, or which one leads. I'd rather it be Amazon.com.