any plans of introducing some sort of webhook type API to listen to machine status for a particular app

This will be useful for stateful workloads, for instance a game engine. The administration / gateway server (as described in Hosting game servers on demand (when another service asks for it) - #4 by kurt) can listen to any changes in the status of machine and pro-actively register new instances if needed (without waiting for a client connection to come, and then figuring out if the machine is healthy or not)

Also, is it ok to query machine status every 5 or 10 seconds for let’s say 10 machines running in an app? Is that a cheap call, or could we expect to run into some rate limits.

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Machine event notifications are something we’re thinking about, but haven’t designed yet. I agree it would be useful!

Machine status is pretty cheap, yes. You should be fine to sync from there a few times per minute.