I would much rather specify a hard limit for number of active instances so 
my app scales up to that point and then degrades progressively. At that 
point the limit is reached, latencies would increase with increasing 
traffic, but if I was smart I would have set the limit so the higher traffic 
would not be able to exhaust my budget because instances stop increasing. 
 So if 30 instances worth of users were hammering my 10 hard limited 
instances, their browser loads would be unpleasant, but the site wouldn't go 
completely offline.

The current reality is that I can only limit idle instances.  As active 
traffic increases, the scheduler can spin up and actually exhaust my budget. 
 So browser latencies would be nicer for a bit, but then suddenly hit a 
brick wall.  After my budget is exhausted, now I've got 30 instances worth 
of users all hammering 1 single remaining instance.  For all intents, my 
site is offline.  In fact, if my budget is exhausted, I think it will go 
completely offline perhaps running 0 instances but definitely not able to do 
datastore operations.

That's not a red herring.  It's legitimately needing a way to limit 
performance scaling so costs stay within a manageable budget.

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