Currently Google App Engine supports both Python & Java. Java support is less mature. However, Java seems to have a longer list of libraries and especially support for J
It's a good question, and I think many of the responses have given good view points of pros and cons on both sides of the fence. I've tried both Python and JVM-based AppEngine (in my case I was using Gaelyk which is a Groovy application framework built for AppEngine). When it comes to performance on the platform, one thing I hadn't considered until it was staring me in the face is the implication of "Loading Requests" that occur on the Java side of the fence. When using Groovy these loading requests are a killer.
I put a post together on the topic (http://distractable.net/coding/google-appengine-java-vs-python-performance-comparison/) and I'm hoping to find a way of working around the problem, but if not I think I'll be going back to a Python + Django combination until cold starting java requests has less of an impact.