Since the included version is so bad, people try to get django-app-engine-patch or django-norel working. Those also suck.
There's a mindset that if Django runs, I can keep doing things the Django way.
Nope. Abandon your old frameworks. If you're going to use App Engine, you have to embrace its distributed, scalable way of doing things. Use something made for App Engine like webapp or tipfy.
Yeah, there are problems with App Engine. It has downtime and things slow down. So does every other hosting platform.
App Engine is getting better all the time. I've been working with it for about 6 months, and nearly every month there is a new release with great new features that make developing apps for the platform better. The new 1.4 release has tons of great features that will make working with App Engine easier, like reserved instances and warming requests.