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
The beauty of python nowdays is how well it communicates with other languages. For instance you can have both python and java on the same table with Jython. Of course jython even though it fully supports java libraries it does not support fully python libraries. But its an ideal solution if you want to mess with Java Libraries. It even allows you to mix it with Java code with no extra coding.
But even python itself has made some steps forwared. See ctypes for example, near C speed , direct accees to C libraries all of this without leaving the comfort of python coding. Cython goes one step further , allowing to mix c code with python code with ease, or even if you dont want to mess with c or c++ , you can still code in python but use statically type variables making your python programms as fast as C apps. Cython is both used and supported by google by the way.
Yesterday I even found tools for python to inline C or even Assembly (see CorePy) , you cant get any more powerful than that.
Python is surely a very mature language, not only standing on itself , but able to coooperate with any other language with easy. I think that is what makes python an ideal solution even in a very advanced and demanding scenarios.
With python you can have acess to C/C++ ,Java , .NET and many other libraries with almost zero additional coding giving you also a language that minimises, simplifies and beautifies coding. Its a very tempting language.