I have the Fire but also picked up a Lenovo Ideapad A1 7" tablet when they had a special pre-release offer for $199. It seems to be going for $249 now at Lenovo. It has 16GB storage and 512MB RAM, microSD slot, front and rear cameras, GPS, WiFi, Bluetooth, and runs Gingerbread 2.3. It only has a 1GHz Cortex A8 CPU but seems to run fairly smooth. I have streamed Netflix and Amazon prime videos fine but have not yet tried any downloaded videos. I really like it and I like the Fire and have a hard time deciding if I will keep both or not.
If you need a more powerful 7" tablet you probably have to spend another $200 or so for something like the Galaxy Tab 7 Plus. I suspect we'll see more full featured 7" tablets with Android 4.0 within the next 6 months that are $300 or cheaper.