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1. The performance is not good, but is improving with pypy,
2. The GIL prevents the use of threading to speed up code, (although this is usually a premature optimization),
3. It's only useful for application programming,

But it has some great redeeming features:

1. It's perfect for RAD,
2. It's easy to interface with C (and for C to embed a python interpreter),
3. It's very readable,
4. It's easy to learn,
5. It's well documented,
6. Batteries really are included, it's standard library is huge and pypi contains modules for practically everything,
7. It has a healthy community.