I think App Engine is very, very good, but it is very, very expensive. Yesterday I was testing my application and I've did a comparison: About 600,000 pageviews delivered, I paid US$ 35 to Google. I'm using Frontend Instance Class F1 and 50 Max Idle Instances and 4.0s to Min Pending Latency. On my current hosting, VPS.NET <http://vps.net/>, I pay US$ 30 daily to have 2 machines with 38.4GHz Dedicated CPU and 6152MB Dedicated RAM to delivery my application. As I use it only 12 hours, I pay only US$ 15. So App Engine Is very, but very, but very expensive. And if I enable the Cloud SQL, it will be yet more expensive.
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