Is "Targeting the Nexus 7" a Good Idea for OEMs?

Instead of trying to deliver a great product at reasonable prices, OEMs (Lenovo, HP, etc) are now racing to the bottom again by targeting their products to match the Nexus 7. This means a tablet with corners being cut, whether it's the CPU, screen, storage, etc, and probably minimal to zero software support (updates, etc).

Now I don't mind the market having options for cheap Android tablets. Problem is, we might see OEMs not wiling to make a good one, opting for just a cheap one they can throw quickly. We already know the Nexus 7's experience is not what I would call ideal, and this is Google's own device. I shudder to think the user experience on those bargain basement tablets. This is disheartening. It's like the OEMs are giving money to Apple, and then wonder why Apple is making more money than them.