Right now I am paying $9/month for an always on app... the intent was
to develop an app, test it with a small group of beta users, and then
eventually scale up - whilst being able to project (and predict) costs
in line with usage.

The idea is to be able to experiment with PAAS at low cost, and then
also pay for the service at the same (or better) ratio to increased
resource usage. But this new pricing model blows it all up and
entirely changes the way I see App Engine for experimental (and
production) projects:

In my case it seems the cost will balloon to $1.96 x 2 x 30 = $117.60/
month... and that's the price even if ZERO requests are processed by
the app.

This does not make sense at all.

I really liked App Engine, but now the annual cost has ballooned to
$1411 before processing a single request.
Does Google only want big apps on their systems? I understand that App
Engine needs to be profitable, but this seems like a move to kill the
project.

(below is, apparently, pricing at a 50% reduced rate through November)
Resource        Used    Free    Billable        Charge Frontend Instance Hours:
$0.04/Hour       72.77   24.00   48.77  $1.96

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