Cloud providers should make their smallest instances basically free. Bottom end instances/pricing is the drug through which developers become addicted to a platform.
AWS also has a free tier for many services (EC2 included) for the first 12 months of usage. They're well familiar with the "first hit's free" business model...
And then there's Azure at €11 point something. The local web hosting company does better specs for half the price, and the lowest one (only slightly lower specs than Azure's) is €3 a month.