169.254.0.0/16

I've just set up a vpn tunnel to Amazon's AWS and as part of the config they required me to configure to /30 tunnels using addressing from the 169.254.0.0/16 space. RFC3927 basically says that this address should only be used as a temp measure until the interface has a proper private or public address. So what's the consensus then? Is their a problem using this space as link-local address for routers here and there (I mean we have 65K addresses wasted in this block) or is it a strict no-no? And if no, why is Amazon using it? Thanks Darren