Like most hosting TOSes, theirs is written so they can boot you if they find you inconvenient, without a specific violation on your part. They say they can terminate service when (among other possibly applicable points):
we determine, in our sole discretion, that our provision of any of the Services to you is prohibited by applicable law, or has become impractical or unfeasible for any legal or regulatory reason
They would have a fair point that, even if it isn’t illegal, dealing with an investigation and bad publicity isn’t worth their time.
For what it’s worth, I certainly wish they stood up at least until they were under specific legal threat. But they never advertised themselves as a data haven.
we determine, in our sole discretion, that our provision of any of the Services to you is prohibited by applicable law, or has become impractical or unfeasible for any legal or regulatory reason
— http://aws.amazon.com/agreement/ 3.4.1 (viii)
They would have a fair point that, even if it isn’t illegal, dealing with an investigation and bad publicity isn’t worth their time.
For what it’s worth, I certainly wish they stood up at least until they were under specific legal threat. But they never advertised themselves as a data haven.