Is there a particular reason why you prefer deploying to GCS instead of the usual standard environment?
Reading and writing to storage is possible at runtime, if needed, as, otherwise, the local file system is not writeable, for reasons related to scalability. Performance, in this case, is not comparable to writing to a local disc. Performance characteristics of reading and writing files to Google Cloud Storage can be quite different from reading and writing to local disk, especially when frequent modifications need to be made to the same file, as detailed in the “Reading and Writing Files” documentation page for PHP.
Services such as logging are offered by the standard environment as well; no need to implement these separately. For caching purposes, using the memcache in the app engine standard environment is free.
You are quite right, application speed may suffer if you employ GCS as cache. It is not meant for such usage. By contrast, there is a free memcache service meant precisely for speedy access. Memcache is generally an order of magnitude faster than Google Cloud Datastore, and so even speedier when compared with GCS. More information may be found on the “Effective memcache” documentation page. Extra details can be read in the “Memcache Overview” article.
To facilitate the usual developers’ workflow, you may consider developing your application locally and using the PHP Development Server. More details on the relevant page.