arstechnica, in the conclusion of the review:
Developers may ignore the 7-inch form factor, graphics-wise, for some time. Many apps may be a bit ugly
Ever wanted to be a watercolor? The Nexus 7's camera is here to fulfill all your romantically sketchy appearance needs.
Overall they think the Nexus 7 is pretty damn good. The Bad and the Ugly both are very weak points. The Bad is on the one hand a maybe, pointing to the future, on the other hand ignoring the fact that Android's Tablet experience is based on unkown scaling anyways - so this isn't a Nexus 7 issue, it's an Android one.
And Talking about the Ugly - I don't know if that's a fair issue as well. Have you seen the so called Apple's FaceTime and FaceTime HD Camera's on the MacBook Air and even the new Retina MacBook Pro? They really suck. And I won't even mention the abomination of a camera Apple put in the iPod Touch - which goes for the same price point of $199. That in my book is a worrisome trend - but also no speciality of the Nexus 7.