Google is the new Microsoft.
Microsoft used to announce mediocre products and people went potty for it. Because Microsoft’s manifest destiny was to dominate the desktop market, it was news when they announced something that took them a little further along that path.
Now Google elicit exactly the same response for exactly the same reason.
If anybody else announced App Engine the obvious limitations of their offering would be leapt upon by commentators and roundly criticised. But, it’s Google. They are fulfilling their manifest destiny to become the Microsoft of the internet, so their foray into cloud computing is news.
Still, won’t have done Python any harm.