I'll be honest.
I LOVED my 10" Android tablet and used it for everything. I thought 7" tablets would be too small to really see the screen, surf the web or check my mail.
Then something happened.
My cousin got a pair of 7" tablets for his kids (4 and 5 years of age) for Christmas and asked me to do the hack and flash bit for him.
I did, and in the process, I REALLY liked the 7" tablet.
Yes, the screen was smaller, but it ran most things just as fast as my 10" tablet, the reduced weight didn't kill my wrist after an hour of reading, and movies, books and comics worked just as well on that smaller screen. I even found out its easier for me to read with a tablet because I can invert a page for black background and white lettering which really makes the letters seem to jump out for me. The app icons and system settings I thought would be too small were still large enough to not impose any added difficulty on me.
I ran out a month later and bought one.
Really, I just wanted something to casually surf the net, check my mail and read on, and to be able to for under $100 is a steal (with a 1.2 ghz cpu and a gig of ddr2).
My 10" tablet now sits in its dock hooked to the tv being used as a media center and retro gaming station (NES, SNES, SMS, SGEN, TG16) when I'm not tinkering and flashing new roms.
7" tablets are perfect size/ weight/ performance for most people, myself included.
I honestly don't care if Apple ever enters into the 7" realm, you just can't beat Android's price performance ratio at this size. I'm sticking with what I've got.