I'm sure that there are some people that have a use for it, but despite my entire site being able to fit into 100k Google Apps is not the right solution. Unless I'm being dumb, and I can put some of my own HTML pages up on my site (not using their terrible templates), only use Google Apps for things like document sharing and e-mail. Do not try to replace even the tiniest web server with it. Oh, and document sharing is only going to be OK if you trust Google with your data. I do, but not everyone does.
An issue that I've also run into is that it's very very slow to render pages.
So, the bottom line is not to use Google Apps for anything but e-mail and document sharing. Your web server will do better than it can, and will allow far more flexibility.