Why after two months is this problem still happening?
The key reason one would pay extra per hour to run SLES instancing in EC2 is so that high quality updates can be delivered from SUSE repositories. And yet using SLES on EC2 seems to result in this feature getting disabled.
And on a related note, why has zypper been designed to ever automatically REMOVE repositories? It is rather disappointing to run "zypper up" and see a long list of SUSE repositories automatically removed PERMANENTLY for no justified reason. This is a very NOT robust and very fragile design. I am running SLES instances on EC2 and automatically billed.