We chose to use EC2 MySQL instances because we have a high read volume and need master-slave replication. Of course, you can spin up multiple RDS instances and setup MySQL replication between them yourself, but we use Scalr.net, which manages that for you using EC2 instances.
Basically, we just tell Scalr how many MySQL instances we want at it keeps them up, automates the setup of replication, handles automatic failover of slave promotion to master if the master gets terminated etc. It does both SQL dump backups and EBS volume snapshots of the master. So, when it needs to create a new slave, it automatically temporarily mounts an EBS volume of the last master snapshot to initialize the slave DB, then starts replication from the appropriate point. All point and click :)
(and no, I don't work for Scalr or anything. Scalr is available as Open Source if you don't want to use their service)
