Not a bad idea but not sure exactly how it would work. There are already some good scripts in the Web2py distribution for setting up Web2py on Ubuntu (my preference) and Fedora: http://code.google.com/p/web2py/source/browse/#hg%2Fscripts
I also created some Fabric scripts for Nginx and Cherokee (I should probably do Apache): https://bitbucket.org/pbreit/web2py-automation/src That makes it pretty easy although I'm sure there's room to make it even easier. I'm not very technical and managed to figure everything out in less than an hour. It's difficult to automate it more because then you have to start working with Amazon APIs and keys. Perhaps there's an opportunity to create a AMI that's ready to go. But really, it's not that hard. I encourage everyone to give it a try especially since you can get a free Amazon micro instance for 1 year. I use Rackspace which is around $11/month.
