I used GAE to build a simple application which accepts some parameters, formats and send email. It was extremely simple and fast. I also made some performance benchmarks on the GAE datastore and memcache services (http://dbaspects.blogspot.com/2010/01/memcache-vs-datastore-on-google-app.html ). It is not that fast. My opinion is that GAE is serious platform which enforce certain methodology. I think it will evolve to the truly scalable platform, where bad practices simply not allowed.
