As Google Web Toolkit is a subset of Java it works best when you Java at the backend too. Since Google App Engine is currently Python only I think you'd have to do a lot of messing about to get your server and client to talk nicely to each other.
jQuery seems to be the most popular JavaScript library option in the AJAX Tag at DjangoSnippets.com.
Edit: The above is only true of Google App Engine applications written in Python. As Google App Engine now supports Java, GWT could now be a good choice for writing an AJAX front end. Google even have a tutorial showing you how to do it.