Why do you assume amazon doesn't have " a backup diesel generator, redundant connectivity, and a good network/sysadmin"? And if they do have that why is your situation different?
You tell me man. I guess the difference is I can install many more times more server horsepower for the $500/month rental of a half rack at my colo, and the result will be better uptime than EC2. I just can't install them immediately.