I thought that I could use SimpleDB to take care of the most challenging area of my application (as far as scaling goes) - twitter-like comments, but with location on top - till
The limits seem to apply to the current Beta release. I assume they will allow larger databases in the future, after they figure out how they can serve the demand economically. Even with the limits, a database of 10GB that supports high scalability and reliability is a useful and cost-effective resource.
Note that scalability refers to the ability to keep a steady and shallow performance curve, while the volume of data or the volume of requests grows. It does not necessarily mean optimal performance, nor does it mean very high capacity data storage.
Amazon SimpleDB also offers a free service tier, so you can store up to 1GB, transfer up to 1GB/month, using up to 25 hours of machine time. While this limit sounds very low, the fact that it's free allows some low-scale customers to use the technology, without investing in a big server farm.