"An alternate perspective: Google App Engine is still a fine platform even with the new price increases."
This depends a lot on what you're doing. GAE is now pretty terrible if you're using it for high-bandwidth applications (say, a data proxy or similar). Especially when you compare it to other providers for whom bandwidth prices have been dropping (AWS, Linode, etc now offer incoming bandwidth totally free and the rates on outgoing are very low as well). If you're using it as a number-crunching backend with relatively small in/out datasets, the new prices aren't too bad at all.
c1.xlarge on EC2 is $1.16/hour. How many of the $0.08 GAE units does it take to match one of those? How many of those GAE units can run optimized SSE4/AVX? (Answer: none of them). I've run 250 c1.xlarge units at a time. GAE wasn't even possible, let alone affordable.
I agree that picking the right tool for the job is important but I just wanted to list the reasons I prefer GAE. There is quite a lot of outrage (raising prices does that) without really considering what the real costs of the alternative platforms are.
This depends a lot on what you're doing. GAE is now pretty terrible if you're using it for high-bandwidth applications (say, a data proxy or similar). Especially when you compare it to other providers for whom bandwidth prices have been dropping (AWS, Linode, etc now offer incoming bandwidth totally free and the rates on outgoing are very low as well). If you're using it as a number-crunching backend with relatively small in/out datasets, the new prices aren't too bad at all.