Just retested my app with the new 1.5.0 GAE SDK. 
Results are completely different. Could be SDK or infrastructure changes. 
Previously, the multithreaded mode
would only spawn 3 instances. Now it spawned 8.
 

1000 user threads, each doing 100 web page requests that issue a couple of 
backend datastore reads with sessions enabled:
- without multithreading
   - 30 nodes
   - average 2.4 sec response time
   - no errors
- with multi threading
   - 8 nodes 
   - average 1.2 sec response time
   - no errors

*Summary: for my app (Java, Stripes, Slim3), multi-threading is twice as 
fast and requires about 1/4th as many instances.*
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