Hello Yissachar, I know the performance issues, I'm constantly working on it but it's not so simple. I'm considering adding the Memcached support into this project but it doesn't bring much performance advantage and in some scenarios everything becomes slightly slower than without cache. Unfortunately working with app engine is not so quick and every little step should be tested again and again, this is the price for an high scalability platform like app engine. Spite of myself I must say that LAE can never reach the performance that Lucene reaches on a file system because there are some limitation in app engine like, for instance, the use of threads, however in LAE there is still scope for improvements and that's what I'm working on.
Now I'm working to improve LAE performance as well in particular every index search operation.
Thank you for using Lucene AppEngine!