I'm soooo tired of Apple vs Google discussions. I'm an Android user and a happy one, but I dislike the fanatic posts and replies I see on many forums. Let's face it: the iPad and Android tablet just live in different eco-systems and that's fine. It's how you should look at them.
I see some collegues using a MacBook and an iPhone and surely an iPad makes perfectly sense for them. They are very happy with it and I'm glad they are. Myself, I'm using a Linux PC and Android phone and therefore an Android tablet makes most sense to me. That's it. I have no need to go and compare the little differences between an iPad and Android tablet. Neither do I start giggling if I see a negative report on the iPad.
Typically the iPad users like the ease of use and consistent interface of the iPad and Android tablet users like the fact that they can customize their tables to a large extend (oh, yes and the price of course). Having dealt with a lot of end-users in supporting their ICT, I can mostly divide them into one of these camps. People do change, yes. And many will switch sides, but that does not make one side superior to the other.
On-topic: I do not own a Nexus 7 (yet), but I do have a multiple 7 and 10 inch tablets and I do agree that older apps (phone apps) do scale nicer on the 7 inch thatn 10 inch tablets. I've never experienced this as a real issue, however. They are workable and most apps will get updated with a nicer tablet interface sometime soon. And I tend to stay away from apps with a stale development cycle anyway.