I don't see the point of a rear camera on a tablet. The kind of people who have enough spending income to afford a tablet usually own a smartphone, or even a feature phone, that has a rear camera. Why would you want a crappy rear camera on your tablet ? for a $200 price point like the Nexus 7, you'd never get anything better than what a cheap feature phone can do.
Any kid that has a parent that would buy them a Nexus 7 has at least a feature phone with a camera that'd be as good as what you could put on the N7, if not better.
If they have a feature/smart phone why would they want a 7 inch tablet? I would love the option of a good camera on the 7 that was one feature of the iPad that my niece really took too. The only problems being that the regular sized iPad is a bit too large for her and for me its a bit too expensive for her to run around with.
The new iPad mini has a good camera but also an obnoxious price. It may be that refurbished iPad2 or even iPad 3rd gen are a better deal.
> If they have a feature/smart phone why would they want a 7 inch tablet?
Yeah you're right, why would someone want something that can achieve 9 hours screen-on battery life when they could just be content with killing the phone battery and taking the risk of not having enough juice left for an important/urgent phone call.
There's also a huge difference between a 4" screen and a 7" screen, you don't really know how much until you've used both. The smartphone is good for quickly checking your mails and stuff like that, but the Nexus 7 is much nicer for browsing the web, gaming, reading ebooks.. reading books on a smartphone is not an enjoyable experience, but doing so on a Nexus 7 is. My experience with the Nexus 7 has also shown me that it's at the sweet point for a small comic/manga reading device. Any smaller and you can't really comfortably do that. Any bigger (like when I had the iPad 2) and it can be a bit too heavy depending on the way you hold it for prolonged use.
The smartphone can be a quick fix when you're not at home and not carrying your tablet (I don't carry my tablet all the time) but at home there is absolutely no way you'd chose to use the smartphone over any tablet, be it 7" or 10", when you're reading ebooks, browsing the web on the couch or watching movies in your bed.
Samsung did try to make a device that can be somewhat good at both, the Galaxy Note 2, but it's not really pocketable so it loses the appeal of a smartphone, and it's not as nice as a Nexus 7 for tablet use cases.
Edit: I meant rear facing on the Nexus 7. Not front facing.