I think app engine pricing is pretty fair. The money you may save by managing custom servers you will soon loose with time and health which are both priceless (if you do it yourself that is).
I recently launched the app engine app I was working on (www.xehon.com). Its a pay as you go CMS. So the app actually computes the exact cost of the requests and storage(datastore and blobstore), and unless you do heavy video and file downloading it is really cheap. An new account comes with 5$ credit which is more or less 1$ of app engine usage cost. Even with heavy usage it would take weeks to burn if off. I guess in the end it all depends on your business model. As for downtime or internal server error, I have rarely experienced it. So I am pretty satisfied with GAE. For now :p -- You received this message because you are subscribed to the Google Groups "Google App Engine" group. To unsubscribe from this group and stop receiving emails from it, send an email to google-appengine+unsubscr...@googlegroups.com. To post to this group, send email to google-appengine@googlegroups.com. Visit this group at http://groups.google.com/group/google-appengine. For more options, visit https://groups.google.com/groups/opt_out.