For sure, AWS is a lot more than a VPS. It has so many other platforms/services/infrastructure you could use to build a true enterprise application; but for development, it's really a lot easier to get up and running with DO imo. Different things for different purposes. If I were going to run a huge application I would definitely pick AWS over DO because of how sophisticated AWS load balancing is, among other things like their VPC and stuff. VPC just seems really confusing to someone who doesn't have much networking/sysadmin background though.
Precisely that's why future developers will find themselves in deep trouble if they thought the skill set of networking, storage, database, application, distributed design are separate topics for different specialisation.
The introduction of real cloud platforms like GCE, Azure and AWS requires all skill sets to come together. No doubt they do away with a lot of nitty gritty having elaborate web console, but still, the skill sets to understand is extensive so that when an application didn't work properly, one must understand if it is due to network that caused it, a slow DNS server, or bottleneck is elsewhere.
Cloud platforms does in some way make less technical folks even worse, but they provide reach of an architecture beyond geographic, cost and effort limitations. One single good solution architect with full stack knowledge can effectively built a much larger solution with much less starting cost compared to decades back.
Well I'm not sure of your expectation for development. For me, AWS makes the best platform to me for fast startup and development purpose. Sometimes I need fast, powerful systems, I make use of spot instances at extremely attractive rates to fulfil it. There was once recently I used up to 6 c3.xlarge systems for distributed photogrammetry purpose and I only spend less than 200USD in the end across a couple of days for the whole exercise. So it really depends on what kind of experiments you are running. Options such as EBS snapshots, large amount of network and storage spaces with extremely fast network connectivity between my home and AWS SG is essential to some of the experiments I do. So far I don't think other platforms can allow me to setup fast, tear down fast with lower cost.
If you want best value out of AWS, you must be building solution of certain size and certain concept. I can assure you, if you just design traditional system concepts, it's way more expensive using AWS. If you understand how to use the services properly, you will see the cost saving. For example, you get web console cloud watch that can track various performance metrics of your instances, can you do the same for other "CLOUD" VPS offerings ? If you need to be notified of certain performance danger zone, can you do the same for other offerings without installing more application servers and maintain them ?
Not all components have to reside in a service provider, I will encourage a mixture at times if they make sense and the cost justified, but sometimes we give and take a bit having it's not entirely a hassle free experience if you make your system all over the place.
If you want to have better understanding over proper cloud usage with AWS, feel free to have discussion on it.