I was thinking about giving a try with google app engine.
As such I was just reviewing the quotas/limitation the service has.
Although google states:
All applications can use up to 1 GB of storage and enough CPU and bandwidth to support an efficient app serving around 5 million page views a month, absolutely free.
The request quotas seem rather low, with only 1GB Outgoing bandwidth in the Requests limits is that enough?...or am I not interpreting correctly?
It sounds like your question should be... "Are Google App Engine's FREE Quotas 'enough.' The limits you are describing only apply to App Engine's Free Default limit.
For example... for requests, the billable limit is 14,400 GB per day maximum, with a maximum request rate of 10 GB/minute. There is no Incoming Bandwidth limit when billing is enabled.
I think the question you should ask yourself is "what type of application do I want to build." If you have application requirements that you think will exceed the default free tier, then you should plan your budget accordingly.