I really think you haven’t fairly compared Amazon’s offerings. You’re comparing GAE to services on AWS not designed to scale to 0, such as Beanstalk — so of course they’re much more expensive!
You’re also comparing along the lines of use cases for which the product wasn’t designed for, like comparing a truck with an F1 car and saying that F1 car sucks because it can’t carry much of a load…
And as to this section:
“Yet this traditional cloud has failed to reduce the human cost of designing, provisioning and maintaining infrastructure.
With old school cloud there are architects and administrators playing with computers and networks. They sit Amazon exams and learn how to assemble infrastructure like expensive Lego. They spend weeks automating simple provisioning tasks.”
This is more or less completely untrue. I work as a DevOps consultant dealing with huge applications primarily around AWS and automating provisioning is something I do day in day out, and I don’t understand how you could believe this. Maybe you are just being hyperbolic, but the breadth, quality and maturity of tools and toolsets that I work with on AWS is fantastic, and I get constantly frustrated comparatively working with Azure, or GCE (though to a lesser extent with GCE, to be fair)