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Snapshots == EBS backed instance, persistence, and S3 storage?

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http://serverfault.com – I want to clear up some confusion and clarify understanding on EC2 instances being EBS backed. If you start an AMI from a community image, configure your server as you want it configured, then use the "create image" option from the EC2 dashboard to create a snapshot, that snapshot (image) can be used to create more servers with your configuration and is considered EBS-backed, yes? If you create a snapshot and later terminate your AMI EC2 instance, that machine goes away, but the snapshot persists and can be used to recreate your instance, whereas if you don't create an image you lose everyth (HowTos)