"Both Amazon and Google are pitching these devices not as computer-replacements, but content hubs. Apple, on the other hand, wants users to think of the iPad in both ways. In short, the Nexus 7 isn’t competing with the iPad directly. While the low price point may lure some customers, I think Amazon has more to be nervous about than Apple."
With that price point ($199 for the 8GB model) and the tight integration of Google’s ecosystem (Play, Google+, Gmail, Docs, Calendar, Cloud Storage), it is much more competetive to the iPad and Apple’s equivalents of those services than to the Fire and than the Fire is to the iPad. I assume that once you’ve set up your Google Account on your Nexus 7, all your stuff will be synched between your devices using that account, i.e. your Andriod phone(s) and your Chromebook and -box, and maybe eventually your Google Glasses. Much like iCloud does now. As far as I know, you don’t get anything like that experience with Amazon. At least not yet.
The new additions to the Andriod OS, Play, and Google+ make the Nexus 7 look very attractive to people who are already fond of Andriond and use/prefer it over iOS/Apple, or people who simply can’t afford an iPad and iPhone.
So to me, what Google presented at today’s keynote, not as individual news or products, but as a whole next step in the evolution of the Google ecosystem, is quite good and warmly welcomed comeptetion for Apple. Except the glasses thing maybe. I have no idea what that is all about.