Granted, those who just need storage (and CDN) there's no point of using an application platform. But with so many startups using EC2 it is clear the service so

Granted, those who just need storage (and CDN) there's no point of using an application platform. But with so many startups using EC2 it is clear the service solves a real need for them. I agree with both of you - it is both the flexibility of EC2 and inflexibility of App Engine that makes a difference.