With amazon, they have complete control over the network in and out, so cutting you off and re-imaging a server is pretty trivial.
To be fair, its not that hard to do even if you're not amazon.
Most of the big server vendor's out of band interfaces have an API, so telling a server to reboot from a network image is pretty trivial. Providing a netboot infrastructure to install images with a 'userdata' script is also not that difficult.
you'll need a DHCP server, tftp to serve the boot image, and usuaally an NFS server to pull the rest of the image over. With some engineering work that could be made to use HTTP.
NVMe is a better match for the the storage operations supported by EBS. A bonus is that by surfacing EBS over NVMe there is a common storage interface for both managed storage volumes and local NVMe storage.
Amazon is a big enough customer that it wouldn't surprise me if they could get Intel to make special ME firmware with the features they want in it.
...which also means the ME exploits discussed recently here could lead to a whole lot more fun... ;-)