Amazon.com just announced that one can host static web sites in a S3 bucket. I went to their setup page at http://docs.amazonwebservices.com/AmazonS3/latest/dev/index.html?W
Update 2019 : AWS custom subdomain hosting in S3
As of today following steps worked for me to have a working subdomain for AWS S3 hosted static website:
Note: Make sure on 'Permission' tab of bucket: -Block public access (bucket settings) -Access Control List & -Bucket policy are appropriately set to make sure bucket is public. ( Assuming you already did this for your root domain bucket, those settings can be mirrored on this subdomain bucket)