This will be an adapted version of Java and modifications would be required to port Wowza, is that something that the company would be interested in?
Personally, I think Wowza on GAE could be huge. It is a more locked-down environment than, say, Amazon EC2, but the advantage is that it is much easier to set up, it scales with much finer granularity, saving money, and it does so automatically, making planning much easier and saving downtime.
GAE gives a generous free daily allowance of 10 gigabytes in, 10 gigabytes out and 46 hours of CPU time enough to keep most small projects going until they take off. After that daily allowance, cost per gigabyte is $0.10 in, $0.12 out and CPU time is $0.10 per CPU hour. Storage is $0.15 per month.
Even without the free allowance, equivalent to $6.80 per day, Google seems much cheaper than Amazon for bandwidth out and pretty much the same for everything else. I have no idea how an of GAE CPU time compares to Amazon's $0.10 Small instance, but I'm guessing that it will be beefier.
Wowza would be one of the most interesting things happened on the newly Java-energized GAE, it would bring a draw a lot of interest and, hopefully, customers to Wowza.
Java on GAE won't be happening until next month but it would be interesting to hear opinions on this.