Look, the Kindle Fire HD blows both of them away in quality. It sounds GREAT, and the screen is great. It feels great too. But at the end of the day, it's still Android. The Nexus 7 is still an Android device.
It's not about how GOOD it looks and sounds, it's about how WELL it works for the user. Android as a tablet still falls WAY behind. Even Windows 8 makes a better "tablet" than the Nexus 7.
I don't understand comments like this. I replaced my iPad with a Nexus 7 a few months ago and have been very happy since. The Nexus 7 is a far superior tablet to the iPad IMO.
More to the point, Kindle Fires are complete crap, why you think they're better than the Nexus 7 is the real mystery here