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
Gone with Python even though GWT seems a perfect match for the kind of an app I'm developing. JPA is pretty messed up on GAE (e.g. no @Embeddable and other obscure non-documented limitations). Having spent a week, I can tell that Java just doesn't feel right on GAE at the moment.