I'm not sure what you mean by "making most of the rest of Django unusable" and especially by "packing it along with the app". Are you familiar with the docs? If you just do as they suggest, i.e.
import os
os.environ['DJANGO_SETTINGS_MODULE'] = 'settings'
from google.appengine.dist import use_library
use_library('django', '1.1')
don't django.forms and the rest of Django work for you (once you upload your app to Google)?
As the docs also explain,
Django versions 1.0 are later are not
included in the SDK. To test your app
with a newer version of Django on your
computer, you must download and
install Django from the Django
website.
but
You do not need to add the newer
Django library to your application
directory.
i.e. you don't have to "pack it along"; it's already made available on Google's servers by Google to your app engine application. (A few third-party apps that depend on relational features, admin especially, don't work -- but your own Django app, written using he App Engine data modeling libraries, will be fine!-).