That is exactly the position I'm in right now. Was going to use GAE but now I'm rethinking that decision. A micro instance of their relational database service would be perfect for my use, but I guess the ram would be too small.

Hm... I don't see AWS and GAE playing in the same ballpark at the moment.

I'm sure AWS will continue to increase the convenience and ease-of-use of their services, and GAE will continue to increase the breadth of their services, but right now they seem to be targetted at quite different app-dev areas.