The system seems to be returning to normal after 60 hours of 60,000 - 120,000 ms latency in taskqueue execution instead of 60 - 120 ms.
I am surprised users were not more vocal about this and no acknowledgement / explanation from Google. Maybe people don't use taskqueues the way I use them - process some data on a taskqueue and then push it back to the UI. For this period of increased latency my users were getting their asynchronous data back in the UI one to two minutes after they had submitted it instead of the usual less than two seconds.
I imagine App Engine uses taskqueues as a way of smoothing out server traffic as they can stack them when load is high and run them when it is low and for the last 60 hours load has been continually high...