Either case, help me understand why PHP was a better choice vs. Javascript? If the question is barrier to entry. Then javascript should have the lowest. Anyone doing any web development needs to do something in HTML/Javascript/CSS.
Additionally you could have made the case for further integration with your other services like App Scripts. Aren't google team talk to each other?
I personally would have rather seen Google focus on Go and remove "experimental" out of Go so people feel some amount of security developing and investing time building Go applications on GAE. Just my $.02!
Slamming PHP is akin to slamming the x86 instruction set. It's besides the point. There are so many large "apps" that effectively use PHP as asm; we need to have a solution for customers that want to run open source CMS:es and CRM:s, for example, and this is all Wordpress, Drupal, SugarCRM, MediaWiki, Joomla etc.
And there are a LOT of startup companies building in PHP, believe it or not. PHP on the server is akin to Javascript on the client. You can argue that Erlang or Go is better, fine, but the reality is that most web sites are PHP. And similar to what happened with V8, there is a significant industry effort in just accepting this and making PHP run faster and better. We don't want you to compare GAE/PHP with GAE/language_X. You should compare GAE/PHP with [other platform]/PHP, and see if you like what we've done. And we're doing some cool stuff with it. We are working to support PHP code better than any alternative. We expect PHP developers to love it. But we're not doing it in order to advocate (or not advocate) PHP per se. You don't like PHP? Then move along, there's nothing to see here.
And as for the "small $5-6 dollar sites" (or free), that doesn't matter. Many of the apps running on GAE are within the free tier, which is one of the great things about the platform. So that's not news. Part of the GAE vision has always been to offer a place on the web to run small web apps for free.
Is there a MySQL-like solution on GAE as well?
What you can't do is run javascript server side. Given the unique requirements of server side javascript, and the fact that the single dominant implementation is maintained by a competitor in this exact space, it isn't a great fit.
Google already has a cloud based, server-side, javascript platform in Apps Script, and has purchased at least one company that operated a JavaScript PaaS, so its not like doing JavaScript serverside is out of Google's reach if they strategically wanted to do it.
I can see why, given the mass of PHP apps out there, PHP might be a priority for App Engine given what App Engine already supports, but I can't see JavaScript as having a significant barrier to practicality.