FYI: I participated in the Montreal Hackathon for App Engine in Montreal on Jan 22 where I coded and presented a portion of my web2py app to the group.
I was demonstrating high performance data retrieval from the datastore into a treeview. I spoke to Sean Lynch, Product Manager of Google App Engine and made sure he is aware of the strengths of web2py on GAE. He also indicated the Full Text Search on GAE will be out soon (within a few months). He does not see any way to use GAE for streaming video however.
