Because it is a source of some very bad traffic. Anybody doing web-facing stuff that is targeted by bots/jerks/spammers/all of the above will block hosting facilities wholesale.
I am interested in doing this. Do you have any information on how to find out which IP ranges belong to server hosts? I couldn't find any useful results searching google.
I've got my own db of hosting facilities which I made by taking 100M urls and doing a lookup on the hostname, then saving the IP found in a db. This gives you some level of confidence that a certain class 'C' is used for hosting.
Or just simply publish your outgoing EC2 ip pool list.
We cannot completely block EC2 because of Pinterest and that's a bad situation.