Update: When I left for work this morning, I plugged his N7 in and left it be. I got home from work and one light tap of the power button and it went straight to the Google screen (the one that normally comes up with a long press when fully powered off) and booted normally. It did cycle for a looooong time at the boot animation, but I figure something went wrong with the dalvik cache and it was rebuilding or otherwise repairing it. Everything seems fine now and based on what I observed, it seems software related, not hardware. I mean in four days it went from out of the box 4.1 to having 100+ app installed, 3 full length movies loaded on locally, and two OTA updates applied.
I'll keep my eye on it, but hopefully it is clear sailing now.