You are right...GCE uses SSH keys to allow connections (way safer than password-based logins), and the user is automatically added to the sudoers list. Running
AFAIK, if you are running scripts manually or crontab'd, they will fail if sudo privileges are required and they get stuck on user input, so that would be another thing to consider.
If you want more security :
1. you could create an additional user, create a password, add it to the sudoers list and enable password for "sudo". $ sudo vi /etc/sudoers and remove "NOPASSWD" for that respective user . It should look like this "testuser ALL=PASSWD: ALL"
2. use
sshguard for your instance. this will block a lot of SSH brute force attacks by adding suspicious addresses to your IPtables INPUT chain
3. do not allow SSH root login or Password based. use SSH keys if this fits your environment