jjx here. This is not propaganda, nor is it incendiary. It's the truth. I have been promoting App Engine to everyone I talk to, because of the ease of deployment and the promise of scalability. I have been waiting for months for the beta quotas to be lifted. My wait has been in vain. It seems that scalability to Google means it will scale on one little machine in their infrastructure. If 500 requests per second is the best I can get from "10 years of knowledge Google has in running massively scalable, performance driven systems", then the hype of Google is a fiction.
jjx here (The original poster). My blog post is accurate. Read the description of scalability that Google provides. It implies that you can scale to any degree. 500 request a second is an absolute joke. I can use any web development environment (like Rails), and get 500 requests per second on a crappy little machine. So App Engine doesn't scale, at all.
The main reason I wrote this post is out of utter frustration with Google. They should get out of the developer tools business. For months I have been coding around their onerous and ridiculous quotas, waiting for the nirvana of paid quotas, only to be horrified by the new quotas. If these quotas are not lifted, then I've completely wasted my time. As it stands now, I'm abandoning App Engine.