The Apple bashing is downright deluded, as usual. Apple makes an extremely high quality product.
I think a 7" tablet is going to be priced more around the $300 mark. I highly doubt you'll see it at $250 or less, because that's not Apple's ball game. Honestly, I think that would be bad, long-term, for their brand. They'd make a big splash and sell a lot of units, but there's a reason BMW doesn't make a $12,000 vehicle - and it's not because they couldn't sell a $12,000 vehicle.
Google believes it can push the edge of the market by selling a tablet at cost. In order to build a $200 tablet, Apple would have to either make some serious compromises, or lose money on each tablet - and they don't work like that. However, with Jobs no longer at the helm, we may well see some odd moves in the future, so there's no telling...