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Amazon reserved instances don't seem cheap.
I've been on AWS micro instance plan for a couple of months, and bought a reserved instance at $54 yearly which is boasts economcial of 61% utilization. I don't find it so.
A micro instance plan from the handy calculator is $14.64
http://calculator.s3.amazonaws.com/calc5.html
My monthly charge is around $7.55. With the reserved instance, the total cost is around $12. So I save about $2.5, hardly 61%.
I see better deals like this for $10 monthly which offers double RAM and space.
Also, I think you should remove the we can use Amazon Free Tier with Micro Instance cos we can't.
If you check again on the calculator (you link to) and change the Billing Option to '3 yr Heavy Reserved' you'll notice that the effective monthly charge drops to $8.64/mth (~60% of 'On Demand').
The cheaper plan that you link to above has a few caveats though... Firstly they're OVZ VPSs not fully virtualised or paravirtualised servers (like Xen, KVM or others - IIRC AWS uses Xen). Whilst OVZ is great (I use it tons for self hosting my TKL appliances) it is nearly impossible to guarantee CPU allocation. It is also easy to overallocate (or oversell in this instance) RAM and other resources (while this hosting company say they don't and I have no reason to doubt them you never really know...).
So whilst for your purposes it may well be adequite it's not completely fair to directly compare them (because it's not an apples to apples comparison).
And you should be able to use AWS Free Tier. I know others have (although I can't test it as I'm not eligible).