I'm on the App Engine team, and I just wanted to clarify one thing: The main difference between CPU hours and Instance hours is that CPU hours are charged based on CPU usage, while instance hours are based on wallclock time. The high ratio between the two you can see with PlusFeed is because it's spending a lot of time to serve each request, most of which is spent doing nothing - likely because it's doing outgoing HTTP requests.
Previously, we had no way to account for apps like this, that take a lot of wallclock time but very little CPU time, and as a result we couldn't scale them well. Under the new model, the charges reflect the real cost here - memory pressure. Every second an instance sits around waiting is a second that the memory occupied by that instance can't be used to serve other requests.
As others have pointed out, we're in the process of launching Python 2.7 support - it's currently in Trusted Tester phase - which will support multiple concurrent requests, and services like PlusFeed are likely to be able to take great advantage of that, reducing their instance hours by a large factor. Likewise, doing asynchronous URLFetches (where that's practical) can cut a huge amount off instance time.