Peter and Luis
Thanks for the quick response and great tips!!  I will probably dig further into this.  
I knew it wouldn't handle the database, but since MySQL's INNODB supports hot backup, it would not be to difficult to script a warm/hot backup and push it to S3.  then it would be a matter of snapshoting or copying the filestore at roughly the same time so the DB and File system represent each other.
I wonder if S3 could snapshot  a file system?  
We have geographically separate sites and were looking at placing an alfresco server at each location.  I thought S3 would be a possibility to mitigate any issues bandwidth or connections at a site.  If i can get over any regulatory issues.  
Anyways, it is an interesting concept and I believe i have to play around.
Adam