That's why it's so awesome. What don't you understand? I get infinite scaling and the datastore. When goread hit the HN front page and the gizmodo front page a few weeks ago, it wasn't any slower: everything scaled perfectly. Consider some of the other readers that have hit the HN front page - they became unusable for a day or two until the traffic died down. App engine is an incredible platform for developing scalable websites.
Yes, that's true when you want to scale. What I'm looking for is something that can run efficiently in my cheap VPS, me being the only user. For that purpose, I'd guess, App engine would be an overkill.