What I think could make customers abandon Google App Engine is having to pay a lot for frontend instances. To use a crude analogy, paying a lot for instances is like paying a lot for SMS messages sent from a cell phone. The quotas for CPU hours, data storage and bandwidth etc are enough to make a huge profit for cloud providers, and the frontend instances are like a cherry on top that is bigger than the cake! Just because other cloud providers are greedy as hell and charge for frontend instances doesn't mean Google must follow that 20th century business strategy.
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