So, Google just released a Moodle-killer deployable in their cloud? ReadWriteWeb seems pretty excided about it here:
My advice for all schools getting excited about it: ignore it.
If you want cloud computing, get your own cloud. Programming for Google App Engine, even if open source, still binds you to a proprietary platform and it’s equally bad as if you coded your application using WinAPI.
Get a server, use external hosting for static files and instead of moaning about Moodle, enhance it and adjust to your needs. You’re gonna thank me in 5 years time when App Engine is not that trendy anymore and everyone else will be wondering: how the heck can we dump it while preserving our legacy apps.