I wonder if some can run a postgresql database on top of that.
This would make it relativly easy to have a master without downtime and be way cheaper than RDS.
It claims to present itself as a full filesystem so I don't see why it wouldn't, however, you're probably going to run into pretty hardcore performance issues, because the bandwidth amazon provides in general is on the stingy side, but under a terabyte, they're downright miserly, with a 10 gig filesystem only able to provide 0.5 MB/s sustained. This product is problematic at best.
There are workarounds for the stateless mess of NFS in modern linuxes, but if you accidentally access a NFS-mounted database from multiple AWS instances, you might get into big trouble, especially when the machines in question run different OSes (e.g. Windows and Linux) or OS versions.