Con: All your base are belong to us
... On a serious note:
Con: You don't control the environment your application runs in. The same cons as with outsourcing any component. Fun for toys, not for business (yet) IMHO.
Various things like API for Google proprietary backends such as their database system and other 'lockdowns' and frameworks that mean your code is tied, in some loose sense to their system can create cost issues later if you want to migrate from GAE. Of course, you could abstract these.
I like GAE, AppJet and others. They are cool. But everything has its place. If you want freedom and the ability to control your language's modules, API, syntax/stdlib versions and whatnot ... don't relinquish control to a service provider.
The lack of standards for environments and specifications for what your app can expect worries me in the cloud arena.
common sense stuff really.