It really depends on your usecase. I've been hosting simple Django-based websites for clients (think 500-1000 uniques a day) for some years, and couldn't be happier really. There has not been a single issue, and the prices for that kind of volume is laughably low ($2-4 a week). I would NOT do django + appengine for anything complex however, since in my experience getting everything to work together without banging your head too much requires a fairly standard Django-app.

Last time I touched any of these sites other than to add security patches and the likes was 6 months ago, so it could be better/worse these days, YMMV.