You can go beyond quotas now on Google AppEngine
googleappengine.blogspot.com
googleappengine.blogspot.com
On the other hand, I want a well-supported platform from Google and if reducing the free stuff means they have a good business model, can hire more engineers, etc, then that's a good thing.
Thats a hell of a downgrade.
Most web hosting companies to not depend on extraordinarily price-conscious highly technical people for their bread and butter.
Could you have gotten Wordpress working on Google without having an engineering degree? Could you have set up a simple brochureware site without an engineering degree? These are common customer requirements among the cheap, mass market web hosting companies.
There's the respectable ones: You get the full use of a 100 megabit pipe, 72 CPUs, and a 500 req/s proxy; plus you can send millions of emails a day.
On the other hand, the limits on datastore and memcache access are out of proportion to the bandwidth and request limits, especially when compared to the free limits. With a paid app you're unlikely to be able to ever hit the Bandwidth / CPU / Request limits because you'll be starved for data, whereas with a free app the opposite is true.
But then some things look very odd. Like: "data sent to datastore API" capped at 153Mb/min, which is 2.5Mb/sec. Uhm. I don't think this qualifies as a distributed high-scale system, if that's the best they can do...
There is no excuse now not to rapidly prototype apps and throw them out there.
Make me feel uneasy.
Anecdote: Google Search has had more downtime in the last 400 days than my main Slicehost slice. This demonstrates to me two things: a) Slicehost is awesome and b) you are the weakest link, whether "you" are Google's whole engineering team or one guy coding from next to a rice paddy.
Personally, anything I code against these APIs, I make as encapsulated/swappable as possible. Downtime aside, I am worried about being cancelled or if someone goes out of business or if someone starts offering a piece of the puzzle that will save me a signficant amount of money. Got to be able to adapt as fast as possible.
Fortunately, Linux lock-in is not something that keeps me up at night :-). This is the beauty of IaaS (VMs) vs PaaS (framework X).
[1] http://appgallery.appspot.com/about_app?app_id=agphcHBnYWxsZ...
GAE was that which tipped me over to learn python and I am very glad now.