Our app is still experiencing at least double the latency as compared
to last week and the app is basically unusable. I'm really concerned
about this since the GAE team has stated that the latency issue has
been resolved.
This is so disappointing if the current performance is considered to
be fine. I'm really hoping that this isn't the case.

I'm curious as to how you are testing latency internally? Perhaps the
tests aren't reflecting very well some real world scenarios and that
some combination of datastore operations are particularly onerous.

In any case, latency is still much much worse than before the server
maintenance.

P.S. also getting random 502 errors which I assume is related to this
issue: 
http://groups.google.com/group/google-appengine/browse_thread/thread/391a6ecc2febfc22/f43d82010fb1b598
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