I think google can't get the I release, i.e. Ice cream out the door fast enough. Once they have the merged desktops (i.e. a common scaling interface layer) the market will truly heat up.
Unlike some, I prefer the 7" form factor for a tablet. I find the 10" pads cumbersome and bulky for long term comfort. That's not to say I wouldn't buy one, but that's my experience. I have a nook color that's been rooted so I'm not just standing on the sidelines.
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I have a 7" tablet (Gal Tab) and an iPad, and I agree the 7" form factor is more comfortable, but I prefer browsing on the iPad, as I can view full web pages. But the Kindle reader is easier on the Tab than the iPad.
For me the question with ice cream will be how functional it will be; I hope they do a better job than they did with Honeycomb.