I’m at Google I/O right now and they just ran a demo of WordPress running on App Engine and using Jetpack to tweet out via the Publicize feature. Cool stuff:
UPDATE: here is the video of the session:
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Raanan Bar-Cohen 
The one thing that can be a bit annoying is that you can not install themes and plugins right from the WP Admin while hosting on the App Engine and have to maintain a local copy of the WP website.
I am from Cloudways and we have recently integrated Google Compute Engine into our platform with an easy UI to launch a GCE instance and install WordPress and WordPress multisites.
The advantage of GCE through our platform is that WordPress websites can be managed and customized online anything can be installed and backups are automated with many other features. here are details: http://www.cloudways.com/blog/wordpress-on-google-cloud/