Granted, that's the bottom of the barrel (single disk, no IPKVM etc.), but $100 keeps you running for over a year. Better servers are easily available as well, usually a couple of times cheaper than AWS.
Is this a US thing? Based on HN only, I'd never know there's anything between the public cloud and racks of own hardware that you have to wire up and maintain.
I have a bunch of quad core 32 GB machines with dual 480GB SSDs for less than $100/month each (and that's a rather expensive provider with great support, you'll cut the price almost in half with e.g. SoYouStart).
Yes, AWS is convenient, but it's far from the only thing in the world.