I'm just the opposite - when I heard they were releasing a new service called Lamda, I immediately wondered whether it was like the inline lambda function in Python - and when I read through the description - they were very similar in nature.

Amazon has a LOT of services, and the better the naming scheme they use, the easier it will be to remember what they each are. I'm genuinely happy that they used a name that will make it trivial to map the function (heh) it serves in my head.