It lacks a cellular networking option and a rear camera.
As I have said before, the lack of 3/4G is not a problem for me. All the places I am likely to get it out, like cafes, pubs, trains etc. all have wifi these days.
The camera isn't something I would use, I have never used the one on my iPad. I am not about to pout semi-naked in a bathroom mirror with something as big as a tablet in my hands, as is the way with so many instagram users. Would be handy for QT codes but again that is something I don't really use as most QT codes seem to be plastered on a billboard or advert for something I'd have no interest in buying anyway.
My biggest grumbles are the keyboard, it is faffy for typing anything more than a paragraph or two. The other is the mono-speaker. The screen size and aspect ratio is something you get used to very quickly, (maybe because I have been using computer screens since they were B&W TVs) and although it does not have the sharpness of a retina display, what do you expect for less than £200? It is still more than sharp enough to display 720p HD.
IMO, most people don't like to admit that for the money it is as good - if not better than the iPad that they paid so much money for. Which is understandable, I am annoyed at myself for buying an iPad - had I known the N7 was going to be as good as it is I'd have stayed clear of the iPad.
Google Play I prefer to the Apple Store, the apps could do with some work but it is still early days.
Oh and no Google Wallet to utilise the NFC is a bugger.