I'm referring tothe datastore admin tool explained here: http://code.google.com/appengine/docs/adminconsole/datastoreadmin.html
One way of backing up locally is by using bulkloader.py, but I'm liking this solution better as your data stays in Google's cloud and can be easily transferred from one app to the other using a button in the admin console on an entity by entity basis. thinking of having two apps, one that i can manually back up to every week, and another that actually serves users. The backup app might incur some storage costs but overall costs would be minimal as no front/backend instances would be used except as needed for the backups...
Backing up one GAE app's data to another app is certainly not recommended by me. To me, there are a handful of reasons to backup:
Backing up to another GAE app does relatively little on each of these.
Ultimately, by backing up to another GAE, you still have all your eggs in one basket. You've just partitioned your basket. If your data is important enough to be backed up outside of your app, it's important enough to backup locally or to another provider entirely. That's my opinion anyway.