Not sure why people are so hostile on this forum.
Most of us here on the Nexus 7 forum are actually pretty nice and try to be helpful. Sometimes, though, we do get a little too defensive or irritated (ahem, JustinMueller8810!
http://forums.androidcentral.com/showthread.php?p=2400441) , especially us "veterans" of a whopping four months on the N7 forum. We tend to see more complaining than praise, which is unavoidable and natural in forums like this, so our tolerance level is a bit low at times. Our like (or love) of the Nexus 7 and the very good (but not perfect) experience that Google has provided makes us a little edgy when it comes to what we perceive, correctly or not, as nitpicking. So forgive us our sins of irritation with your frustration. In the end, we simply want you to have a good experience with your N7, from beginning to end!
I ordered a Nexus 7 for my boyfriend on November 29 (Thursday). On the same day I received email confirmation from Google Play that my item has been shipped. Fast forward to today (Dec. 4th), the UPS tracking status still reads that: "only a label has been created. When the shipment arrives at the facility, the status will be updated."
Now then, regarding your situation, I think the real confusion here is coming from the fact that you received a shipping confirmation email, but nothing has actually shipped. This confirmation actually means that your order was processed and entered into the UPS system, not that it necessarily left the warehouse. The fulfillment warehouse contracted by Google likely ships in batches, possibly based on shipping region, both for logistical and cost control reasons. But step one is to create the shipping label and enter the package information into the UPS system. Once that's done, a confirmation email is automatically generated, which probably really shouldn't be called a shipping confirmation. You might get another email confirming that the package is actually moving, but if not, you'll need to check the tracking number a couple times a day to see if the status has changed.
I understand your frustration with not getting a good answer when you called Google support. This is a normal reaction when reliable information isn't as forthcoming as you'd like. The reason they didn't have a good answer for you was that they only had the same information you did. That is, the order was received, shipping information had been entered and transmitted to UPS, and that's about it. The rep you talked to was probably silent because he was trying to navigate the computer system and get more information about the status, and needed the time to do so. He was likely inexperienced or still in training (or just not very good), which is why he was silent instead of asking to put you on hold or occasionally telling you his status.
Additionally, though it would seem like a simple thing for him to find an answer to your specific dilemma, these reps are not specialists in just one area. They are generalists, required to answer a myriad of questions about lots of different topics and devices, so to quickly pinpoint an answer for one specific problem might understandably take more time than you'd like. I guarantee you that his performance is also being evaluated, so if he doesn't improve from the type of experience you described, my guess is that he'll eventually be shown the door. But for now, remember that not everyone is a customer service superstar. Being Google, I can imagine there's a fair amount of performance pressure being put on these people! So I would go easy on him, as he is just trying to make a living, same as you. Or maybe he's just an incompetent jerk. Who knows?
I can also under your anger with paying for 2-day shipping and then getting an email saying it shipped, yet a day or two later it apparently still hasn't shipped. It certainly is irritating when information you receive doesn't prove to be 100% accurate, at least in terms of the title of the information. But once it does ship, you will indeed get it within two days, and possibly the next day, unless UPS screws up. The shipping cost is going to be there no matter what, and if you were only charged $7.99 for 2-day shipping, that's actually a pretty good price. The alternative would be to buy from a local retailer, but you'd still have the cost of your time and gas to get to the store and make a purchase.
Lastly, the current shipping status online for new orders states that orders will be delivered in 3 to 5 business days. If this was same as when you placed your order, then that means you should receive it anywhere from Tuesday to Friday of this week, depending on what time of the day you placed the order. So I would be more concerned, but not overly so, about Google fulfilling this promise as opposed to what a shipping confirmation tells you. Here is what Google states regarding their shipping estimate:
"All packages are delivered via UPS two-day shipping. However, please note that it may take up to 2 business days for us to process your order for shipment. Once your order has been shipped, you will receive an email notification with a UPS tracking number. Your estimated time of delivery will be determined at the point that your order has been processed and shipped. It may take one business day for the UPS package tracking to return any information for your tracking number."
"If you have not received a package tracking number after 2 business days have passed, please contact our support team."
I hope you get your unit soon (maybe you'll get a surprise today!), and that once you do receive it, you enjoy it thoroughly, and can forgive and forget this initial negative experience. Good luck!