The 7" form factor is much more mobile than the 10" iPad. It's just small enough to squeeze into the back pocket of my jeans. That means it's much more portable and I'll bring it with me more often. I usually left my iPad at home, unless I needed to bring it for work (I am an iOS programmer after all). If I was going to carry something that large, I would bring my Mac Book Air instead.
The Nexus 7 is also much lighter and easier to handle than the iPad. The iPad can be difficult to hold in your hand for long periods of time, especially using only 1 hand. If I am using an iPad for reading or watching a movie for a couple hours, it's heavy and large enough that I need to put it on a stand or set it down on a table or my lap.
At $200 ($250 for 16GB) the Nexus 7 is a winner. It's not quite as good as an iPad, but at less than half the price, it doesn't have to be. It's cheaper and more portable, which means it can go places where the iPad can't. The 7" form factor is a winner. Of course, Apple is going to come out with their own 7".
But if you are already an iOS user like I am, moving to Android is a bit of a pain. All my music, notes, reminders, calendars, contacts are already in iCloud. I'm sure that there are ways to move all of it, but is it worth it? Not really, I think. What makes Apple products so good aren't just the devices themselves, but the entire ecosystem and how easily everything works together; iTunes on the Mac, iCloud, Apple TV, synchronizing across devices. Once people get sucked into Apple products, they stay there for good reason.
But as a standalone product, the Nexus 7 and the 7" form factor is a winner. I've been carrying it around for the past week, while my iPad stayed at home.


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