How do I launch an EBS backed AMI as an instance store machine with out having to do too much hack? Also, more specifically, can I launch this using in an autoscaler?
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I can answer the first part of your question. As far as I know you can not launch an EBS backed AMI as instance store machine. Instead what you can do is create an IS (instance store) backed AMI from the EBS backed running instance and use that to launch instance store backed instances.
The process of converting EBS backed instance to IS backed AMI not so straight forward. You need to start from a EBS backed paravirtual instance and after that I followed this answer for the conversion. To install AWS tools and command line utilities use this AWS tutorial.

shshnk
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