EBS snapshots provide you with a slightly different type of backup than WAL-E backups. EBS backs up all disks, which means that if your EC2 Virt goes down, you can just restart virt with the last EBS snapshot and everything will fire right where you take your snapshots at the last moment.
The frequency of your EBS snapshots will determine how good your database backups are.
The attractive thing about WAL-E is "continuous archiving." If I needed every database transaction, then the correct WAL-E choice seems to be the right one. Many applications that I can imagine cannot afford to lose transactions, so this seems like a very smart choice.
I think your plan to take a snapshot of production as a baseline, and then use WAL-E for continuous database archiving, seems very reasonable. Personally, I will most likely add a periodic snapshot (once a day?) To this plan just to make a heavy baseline and make the recovery process a little easier.
The usual caveat: "Check your recovery plans!" applied here. You mix a number of technologies (EC2, EBS, Postgres, Snapshots, S3, WAL-E), so making sure you can really restore - and not just back - is crucial.
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