AFAIK, the 30sec limit is only for request time. Uploading/storing to
Blobstore does not have this limit. Neither does serving a Blobstore
data has this issue.
http://code.google.com/appengine/docs/python/blobstore/overview.html#Serving_a_Blob
I currently run a music site to which users regularly upload more than
10MB file taking more than 30 seconds. Users are successfuly able to
stream the music using any freely available Flash music player.
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Ritesh
http://www.beamto.us
I agree with Ikai or if you could figure out other revenue stream.
Though even with $0.12/GB, its possibly one of the cheapest rates out
there. Long story short, its technically possible, now one has to see
if it makes business sense.
Best of luck.