Second is that it runs on AWS. This isn't a problem in the sense that it's possible for it to still retain privacy while running on AWS. Some people don't like it because they view the dependence on the infrastructure of an American company to be a risk to availability. They also believe that it would exacerbate a security flaw if one were found.
Let's not pretend the hypervisor doesn't have full access to the VMs memory and execution. The only thing protecting the Signal server is Intel SGX.