One of the big problems with the Nexus 7 and why so many initially bashed it was because of the Asus Memo 370T (demo'd at CES this year) which the Nexus 7 is based on. The 370T was a just about perfect, it had a memory card slot, HDMI output, back facing HD camera with LED flash, GPS, NFC, Blue Tooth, and other features for an Asus estimated price of $250 or less. Hell, the Nexus 7 motherboard is even stamped
"Asus ME370T". To make things worse, when Google demo'd the Nexus 7 at the Google I/O conference they showed the tablet doing screen mirroring via what appears to be an HTML connection. There were even pictures
showing the HDMI port. Turns out they used a modified, non consumer release, version for the demo.
The Nexus 7, or Kindle Fire HD, or other 7 inch tables are not for everyone. They do have their drawbacks. For me typing on a 7 inch tablet is a little difficult. 10 inch tables are not for everyone either, they too have drawbacks, for me it was the larger size (can't pocket carry) and weight.
No tablet will satisfy everyone. For me the Nexus 7, at the time, had the most features for what I could afford, and was getting really good reviews. Sure I wish it had an memory card slot, back facing camera, and or HDMI/MHL support. But it doesn't. However, there is an easy workaround to the no memory slot issue, and there is supposedly a possible workaround to the HDMI/MHL issue in the works as well. Plus there are hacks to enable the use of a 3G dongle on the Nexus 7.
All in all I've been very satisfied with the Nexus 7 since I bought it in late July.
Edit to add: Here is the Google IO conference video where they demo the screen mirroring that is not available (as of yet) on the consumer released units.