It doesn't seem like we're going to get a 7 inch Windows 8 tablet this year. That could be detrimental because where I see that Microsoft built this thing for a 10 inch or more horizontal experience, the Nexus 7 and the obviously inevitable iPad Mini are going to duke it out with the already entrenched Kindle Fire for mini-tab supremecy.
Thing is....Windows 8 might be a cute little departure on Windows 7, I'm sure it could scale down....but it seems that these 7 inch 16x9 tablets are meant to be used in portrait.....more for reading e-books....and then generally how we use our phones. Can Microsoft build a portrait mode into Windows 8 where you basically see all your tiles switch to how they are in Windows Phone?
They could maybe use Windows Phone for this tablet, but I think Windows 8 would still be a better solution.