10TB/month averages out to 32Mbps. From what I've heard, try using anywhere near that on your typical "all you can eat" provider and you'll either be QoS'd enough to never achieve it or you'll suddenly be in violation of some finely printed Terms of Service.
On a side note, all facilities (and not just Linode's) will experience issues from time to time. You want to evaluate the manner in which it was resolved and the frequency. Don't move because of one outage in the last several years and degrade the experience for your customers. If an outage is going to damage your business then you should investigate high availability and/or quick deployment strategies.
All of that being said, if your users are mostly US based you probably won't notice the latency between any of the US based locations.
I haven't seen anyone mention the cost of IO requests associated with EBS. Quoted from http://aws.amazon.com/ebs/ :
As an example, a medium sized website database might be 100 GB in size and expect to average 100 I/Os per second over the course of a month. This would translate to $10 per month in storage costs (100 GB x $0.10/month), and approximately $26 per month in request costs (~2.6 million seconds/month x 100 I/O per second $0.10 per million I/O).
I'm running 4 m1.small EBS-backed LAMP servers in all 4 regions. I pay about $1/mo for EBS IO (8-11 million IO requests per instance per month). The servers get a few thousand hits per day. The cost of EBS IO should be minimal in most cases. The benefit of EBS versus the local storage you'll get with Rackspace or Linode is greater durability because it is off instance and AWS automatically duplicates the data. If the VM host system fails (i.e. power supply goes bad), you can bring your instance back online within a very short period of time on another host at the exact state it was at the time of failure.
One word of caution: sometimes when an instance becomes unavailable (think network partitioning), all its EBS volumes will become unavailable as well. You can't snapshot, you can't detach. My most frustrating experience on EC2 yet.
