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All-in-all, the GS is a new service, new technology for MT, and something that is continually receiving improvements based on customer feedback.
Should you be worried still? That's difficult to tell. I haven't heard of any recent developments that have forced site admins to pull their hair out about. Hosting is one of those tricky things that you can say something like "you get what you pay for" but may still find yourself looking at a website that doesn't load. There are no perfect hosts, but there are great overall customer experiences.
If you're someone looking for complete control over you site (root access), consider moving to a Dedicated Virtaul 3.0 (DV). That's what I use and I took a massive hit from Engadget, Apple Insdier, TUAW, and Digg all in the same day and the site loaded like normal. I've gotten to the point that if my site isn't loading properly, it's probably because I accidentally broke something myself.
Edit posts above: Mosso -> Media Temple
The first is a (DV) account which I use for hosting two serious sites including my own. This initially experienced some downtime but more recently has been performing flawlessly.
The second is a (GS) account which I have been using as a test site and on which I offer free hosting to friends of mine on the understanding that they may experience frequent downtime. Initially the experience was disastrous with daily downtime, but since the middle of February, following a major overhaul by MT, downtime on the GS acount has all but disappeared.
The main drawback of GS, from my point of view, is the lack of root access and also, of course the lack of individual IP addresses for each website hosted.
But for hosting a large number of small sites, it is basically unbeatable in my view and quality issues appear to have been ironed out.
Fingers crossed...
Brent