I've verified this works on both:
us-east-1 ami-1234de7b ebs/ubuntu-lucid-10.04-i386-server-20100827
us-east-1 ami-1634de7f ebs/ubuntu-lucid-10.04-amd64-server-20100827

One minor edit to your verification process:
< $ sudo rm -Rf /var/lib/cloud && reboot
> $ sudo rm -Rf /var/lib/cloud && sudo reboot

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t1.micro EC2 instances hang on reboot
https://bugs.launchpad.net/bugs/634102
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