I think you've got that backwards. The other cloud services referenced 
(amazon/rackspace) are IaaS, and allow you to host your own operating 
system that you have complete control over. App engine is the service with 
a layer between the data and the application. You can't control how app 
engine datastore works. On rackspace/amazon you can host whatever database 
you want or make your own database. It its a totally different service 
model.

I'm not saying one is better then the other, but your implying that you 
have more control with app engine then you do with other cloud services 
when its quite the opposite.

I think most people who use app engine prefer it because you don't have to 
understand how everything works. I get a black box servlet environment, 
datastore, and whatever else a site typically needs. I don't have to waste 
time knowing how all of this works, I just get to use it. People who need 
the sort of control you are talking about tend to prefer IaaS services 
where you can control how everything works. 

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