Isn't it possible to treat instances similar to pages in a virtual memory page swapping algorithm? And if too many page swaps are made too frequently then either the page swapping algorithm sucks or there is too little physical memory (or both :D). I doubt that the Google engineers are using a crappy instance swapping algorithm which indicates that maybe they are trying to cram too many instances into the available physical servers and that this is the reason why there is so much instance swapping going on in GAE.
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