You are 100% on target. After being a Nexus snob for years, looking down my nose at the lowly Samsung ecosystem, I bought a Note 5 and really went all in on Samsung. I saw the Samsung shortcomings: too many half-baked features, poor update support and more, but still, I loved the hardware. The N7 just blew me away and I continued (briefly) on my Samsung path. Samsung Pay, Fit2 and everything.
But, it was the way they handled the N7 issues that really turned me away. I am fully aware that some people are comfortable with the way Samsung handled the recalls, but I am not in that group. They lost my trust 100%.
Thankfully, along comes the Pixel. Amazing luck timing-wise for Google.
Does the Pixel best the N7 on the hardware front? Not at all. The N7 is quite the pinnacle of design for 2016, IMO. The Pixel is rather plain in comparison, design-wise. But the actual use of the Pixel far exceeds the N5/N7 in it's elegant integration/execution. No comparison actually. The Pixel feels like a an integrated product optimized for ease of use of powerful features, it doesn't feel like the mish/mash of too many questionable features that Samsung products felt like to me.