I have an app on GAE/J that has around 50-100 instances running at any point 
of the day (single threaded, yet to do the thread safe thingy).

1. Datastore problems have reduced (I'm on master/slave) and almost 
disappeared on high replication
2. Costs at the present price for an app that consumes resources the way my 
app does should be in the range of $300-$500 per month which I think is 
justified. I have a very small component of AWS and that costs me $100 so 
I'm guessing if my entire application was on AWS it would have cost me at 
least $1000 + many man hours managing it

Frankly, I'm not happy with the new pricing scheme (at least what it looks 
like right now). We'll know more once it's implemented. If the cost increase 
is twice or even thrice of the current price, I think it would still be 
worth it. But anything above that would be a rip off, at least for me!

Having said all this, I want you to know that I'm building yet another new 
app http://buffr.com and yes, I very well know costs may tilt towards being 
prohibitive for a big app on the appengine. But I'm still going to prefer 
building new apps on the Appengine simply because it is extremely easy to 
get started and go live! 

Take my advice, get started on the appengine. Grass on the other side always 
looks greener but every platform has its pros and cons.

A time will come when your app grows big and if you don't find appengine 
suitable you can move it some place else (it's never too late to change 
things in software). You can then write a post on how appengine was not the 
best decision because your app became insanely popular. Let that day come, 
you wouldn't regret it so much ;)


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