I don't know if Google advocates horizontal movement to different orgs/teams specifically, or if its just anecdata I've picked up talking to Googlers and reading about their org structure, but I wonder if this and the promotional scheme of "launch and move on" has caused teams to splinter and lose serious velocity - becoming the direct cause to stuff like this.

Personally I think Google App Engine has always had massive potential but has been at about 80% of its potential since its inception.

EDIT: Also I don't want to take away from this press release, the CLI is awesome and its going to help a lot of people.