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!-).