New Age Of 7" Tablets?

Been reading a lot of reviews of the Nexus 7 and there are a lot of positive feedback. One positive which keeps popping up is how good the size of the tablet feels in the reviewer's hands.

Today, I was lying down and holding up my iPad and then I thought to myself: I wish this was smaller. I thought majority of iPad users use their devices for media consumption than actual work. I use my iPad as basically a Kindle reader and watch some small videos, play a couple of games and that's it. A 7" tablet seems to be the perfect size for stuff like media.

If the public respond and buy lots of Nexus 7 tablets, and then you compare it to the Kindle Fire's success, could we be saying a new age of 7" tablets? And will Apple have to introduce their very own? Or is Apple already working on one?