[imtringued]

You will get undercut because AWS storage is extremely expensive and nobody sane actually stores data with significant amount of traffic there. The outbound network traffic fees are enough to make your strategy unprofitable. Then there is also the fact that you're wastefully storing 3 redundant copies of an erasure coded piece of data when you could just store 3 erasure coded pieces of data directly without any redundancy.

What's most likely going to be profitable is buying crappy consumer HDDs inside external enclosures and shoving 60 of them into a single chassis. The reliability of the storage medium doesn't matter with something like filecoin. Node failure is not just an edge case. Filecoin has to account for it by using erasure coding to survive the loss of nodes.