The new Nexus 7: Good for reading, not much else.
When I played around with the new Nexus 7 today, I quickly remembered why I bought a Kindle Fire HD and Nook HD earlier this year and returned them both. 7" tablets are great for reading books, but pretty much suck at everything else. Web browsing, e-mailing, document editing, and other tasks quickly become frustrating and take far too long. Text in web pages and PDFs is often too small to read comfortably. Games are cramped.
If you buy a 7" tablet, you'll likely force yourself to use it for other things to try and justify the purchase, as I did. But, as time passes, whenever you have light work or more to do, you'll find yourself dropping the tablet and running to a laptop or desktop. At that point, you'll realize that you didn't buy a cheap tablet, you bought an expensive e-reader.
Google is making a mistake by believing sales of 7" tablets are meaningful. Apple and Microsoft tablets will ultimately replace a lot of laptops and desktops. The same can't be said for 7" tablets.
If you are looking for a reading device, the Nexus 7 works well. The colors are better than the colors on the old one, it looks good, and is easy to hold. The price is tempting and seems like a bargain, but ultimately you get what you pay for: A good reading device, but a very limited tablet.