Bought the Nexus 7 recently as a gift for hubby. I did do the updates to 4.1.2, then after some research, 4.2 and then 4.2.1, but only after doing a factory reset before 4.2, and then after 4.2.1. For the most part, I have not noticed any particular issues, the device is still smooth, apps open fast, bluetooth works, battery life seems good. I do have background data disabled in most apps and also location services disabled.
However, twice now, when updating apps so hubby won't have to be bored with that, I get MAJOR screen flicker in the Google Play store. This only happened while actually downloading updates, but also, after downloading an update, the back button would not return me to the previous screen, I had to use the Play store link in the upper left corner to leave the screen of the app I had updated. It did not do this prior to the updates.
Sent from my Samsung Galaxy Note (Thing Two).