I wouldn't go for it. It needs more time to mature.
The website itself states that the plugin is bugged.
Bugs
It is true that there are some bugs
with this plugin, but most have a
solution at this time.
Example: The "DataNucleus Enhancer
prevents application from building on
Windows OS due to path length
exceeding max path length on Windows."
However, there is a work-around for Windows and this wont stop use of the
plugin.
Some annoying bugs have not been fixed:
If you feel like spending time debugging the plugin, writing and testing workarounds, go for it. Still, you wouldn't be safe from critical/blocker issues which will make you MAAAD!
If you really want to work on App-Engine, using Eclipse and the Google Plugin for Eclipse seems the easiest and most efficient method.