The docs point to the following (current) limitations:

Storage per App: 500MB
Files per App: 1,000
Size per File: 1MB

I would like to launch a personal storage application, where file
content is stored inside a BlobProperty.

Beside the current limitations (which I hope will be lifted in the
very near future) on storage per app (500Mb) and in/out bandwidth...
can my app receive a 10Mb file and store it in a BlobProperty? If
there size limits on uploaded files and/or BlobProperties, will they
ever be lifted once we can pay for additional resources?

My question to the GAE team in brief is... will writing a storage
application ever be possible with GAE? Or should I just head off to
AWS and use S3?

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