Yes, I remember this. But after removal of 'high cpu quota' there was no 
(spoken) penalty for over 1000 ms request latency (beside bad user 
UI experience) and now it is inability to get new instances.

If you look at Quotas and 
Limits<http://code.google.com/appengine/docs/java/runtime.html#Quotas_and_Limits>
 there 
is statement: 'Applications that are heavily CPU-bound may also incur some 
additional latency in order to efficiently share resources with other 
applications on the same servers.'

So what are heavily CPU-bound applications. Currently only information that 
we have are yellow and red warnings.

I hope that somebody from GAE team will give us more information.

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