I don't think the Nexus tablet is a bad idea at all. In fact I think it was a bad idea not to do it before the Kindle Fire arrived, and before the Touchpad firesale. Instead they started out with the Motorola Xoom, a $800 tablet (at launch). Big mistake. Then the $300 set top box, and then the $450 Chromebook. It's like there's a pattern here, with Google not really getting what's the right price for an initial launch of a new product - and always going too high. But this $199 Nexus tablet shows that they are learning.
Besides doing this a little late, my other complaint is that this 7" tablet will do almost nothing to bring more tablet-optimized apps to the Android tablet ecosystem - unless Google is specifically asking developers to make "tablet apps" for that 7" tablet.
But other than that, this is very welcome, even if their partners might not be thrilled about it - but in the end, the Nexus line has always been about pushing their partners and setting new standards. Most of them still refuse to make such low-priced tablets, so if anything it's their fault for not doing it earlier.
Besides doing this a little late, my other complaint is that this 7" tablet will do almost nothing to bring more tablet-optimized apps to the Android tablet ecosystem - unless Google is specifically asking developers to make "tablet apps" for that 7" tablet.
But other than that, this is very welcome, even if their partners might not be thrilled about it - but in the end, the Nexus line has always been about pushing their partners and setting new standards. Most of them still refuse to make such low-priced tablets, so if anything it's their fault for not doing it earlier.