When Microsoft created .net both pro and anti-Microsoft supported complained rather largely to answer your question. This was during the aspx days that eventually was scrapped in order to support common languages across their platforms.
You seemed to have missed my point though, this isn't Google or Microsoft creating a competitive product and going to market with it. It's Google asking developers and startups to trust them with both your code and data but they'll do the right thing with it. I wouldn't have trusted Microsoft back in the 90's before they were depicted as the borg on Slashdot and I don't trust Google now based on their decision to copy an application from the same market they are trying to encourage to use Google App Engine. This isn't Microsoft vs. Google or Adobe but it was in bad taste and they obvious agreed since they took down the app.