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In the article he claims EC2 is $27/month. Was there a recent price reduction?
He computed incorrectly. He didn't include the usage, with the reservation cost. A reduced usage still applies. The correct price is...

h = hours in a year = 8765

($325+($0.03 * h))/12 = $49.00/month

The best deal is a 3 year block

($500+($0.03 * h * 3))/36 = $35.80/month

This is the first I've heard about Chef. I've spent some time with puppet, and it looks like Chef is trying to fix a lot of the pain points. Particularly, getting rid of that awful external DSL and using straight ruby.
I got started with Chef today and it's great. It's organized into recipes, and you can share cookbooks (see the official one, it has plenty of recipes for common things). I also like using erb templates for config files.