> From AWS’s perspective the whole VM is in the same security context.
That's AWS's perspective. But my perspective, as an AWS customer, is important as well. And I might want to run something on a VM that I myself don't necessarily trust - that is the ultimate benefit of an ephemeral, isolated VM.
Right, then you run that code in a VM that has no ambient privs. If you still need to do AWS access stuff then you just stick your access keys in files somewhere your untrusted process can't touch like if you weren't on AWS.