The tablet market is presently caught in a race to the bottom, at least in terms of pricing. The shift from the initial crop of 10-inch tablets to 7/8-inch models is well under way, and with that shift comes downward pricing pressure.
This year ASUS and Google were both under pressure to seriously improve the Nexus 7. The combination of a better display, better WiFi and better SoC all led to an awesome device, with an unfortunately higher price point ($229). While I don't expect anyone looking for a premium 7-inch tablet to have issues with the new price point, the new Nexus 7 does run the risk of leaving us with no good option below $200.
To fill the void ASUS chose to build an updated version of the tablet that turned into the original Nexus 7: the 7-inch MeMO Pad. In many senses, the new MeMO Pad HD7 is the true replacement to last year's Nexus 7. It features a similar 1280 x 800 IPS panel, very similar dimensions, and in many cases it offers similar performance. The biggest improvement? Price. The MeMO Pad HD7 starts at $149 for a 16GB model (there's a $129 8GB model available outside of North America as well).