Why would I ever want to create an EC2 from an instance store, given the possibility of data loss? What advantage does it offer?
This is mainly a performance reason as EBS as well as EFS is a network file system it comes with latency and limitations in network throughput. Most applications won’t be affected by such limitations, however, some require the performance provided by an instance e.g. for very fast caching of files or other performance critical applications where IO gets the limiting factor.
Further explanation can be found here: https://help.acloud.guru/hc/en-us/articles/115003534253-AWS-EC2-Instance-Store-vs-EBS