Predatory pricing and Nexus 7

The Nexus 7 seems like a great tablet for an incredible price, but isn't google hurting the whole android tablet industry (and if its massively successful the industry as a whole)? The whole Android idea is based on choice and openness.

Google has an advantage of huge profits in its search business and media services so it can sell the tablet at a loss or barely break even in the best case scenario - if you buy directly from them as stated by Brin himself, but other manufacturers have no such thing. Asus (with their non-nexus tablets), Samsung, Motorola, HTC ... thats only few of the guys that just got blown out of the water with their last hope of selling tablets lost in one Google keynote. All of them trying for years to bring something new to the table to compete with the iPad - being it a pen, a keyboard dock or in-house apps - and turn a decent profit just got killed by a weapon that only company like google can use - the price.

On top of that this kind of predatory pricing strategy is outright illegal in most countries and I can't imagine other manufacturers not pursuing their rights in court in the long run. Maybe not in US, as US seems to tolerate this practice more than others, but for sure in EU where Google is already under antitrust investigation.

Do you think this is a problem for android tablets? Or do you just care about your new cheap shiny from google?