I bought a Nexus 7 a little while back and my initial reaction was similar to yours. Now, I'd rather use my old iPad gen 1 than the brand new dual core Nexus 7, which -- among other things -- can seize up so badly when doing something as simple as typing a URL that it misses touch events altogether.
Didn't notice this by now, but i can say that i'm pretty happy with it (for now). As i said in my initial comment, Android has problems, but if you think back to the first iOS versions, there were a lot of problems. Many people dont remember that, but before iOS 4 there were a lot of pretty nasty bugs.
The other thing is, if android improves more over time, it's doesn't hurt so much when they drop support for device X after 2 years when you only paid 200-250 Euro/Dollar. If you run a 2 year cycle of devise-replacing for a price like that, i'm perfectly fine with it.
The nexus 7 is scarcely a 1.0 device (and I had an iPad on release day and it worked fine on iOS 3.x). My kindle fire, with its many flaws has never seized up this way.
