I prefer the loose coupling of Amazon's web service components. But that said, this is certainly an interesting development with a lot to offer. Python wouldn't have been my language of choice but it's a logical choice for Google.
I giggle at the fact that your users will end up creating Google accounts. Very smart on their part, but feels more than slightly underhanded :). Then again, maybe I'm just bitter since I got waitlisted, ha!
From my initial perusal of the AppEngine stuff, it seems that using Google's authen/author is optional. It's not like Google could figure out if the forms your app is processing are login forms or not, so I don't see how it could be otherwise.
I giggle at the fact that your users will end up creating Google accounts. Very smart on their part, but feels more than slightly underhanded :). Then again, maybe I'm just bitter since I got waitlisted, ha!