Your first point isn't really valid, they are an ad company, paid apps don't fit their business model. Providing a phone OS, ad service, and free apps that interact with their core services however are.
The second is more interesting though. They actually do use it quite a bit. Its the kind of thing they use internally, and the employees use for personal projects or when they need something technical for an external presentation. Also, app engine is probably built to serve a different purpose to their other services.
The second is more interesting though. They actually do use it quite a bit. Its the kind of thing they use internally, and the employees use for personal projects or when they need something technical for an external presentation. Also, app engine is probably built to serve a different purpose to their other services.