The new N7, just like the last one, is the likely the best tablet in it's niche to date.
That doesn't mean it'll never be beaten OR that it is best for everyone, just for the majority of mass consumers. It's by far the fastest Android tablet I've used so far, which makes it possibly the fastest tablet period.
Of course 32GB is not enough for every piece of media a person owns to be carried with them at all time. That is not a flaw though, that just means that's not what the tablet is for.... side note, that is exactly what the cloud is for. There are places where the cloud does not work, which requires users to be slightly proactive in either their usage patterns, or, given that 32GB without unsupported expandable storage options (and with users unwilling to use supported expandable storage options), perhaps that minority can purchase a different device that is more suited towards their specific use case.
Tablets like this are clearly designed in a way that most people will be using them at home, at school or at work. All three of those places typically have wifi solutions (obviously not for everyone, but typically) and thus the cloud is an incredibly reasonable and viable option for that use case. If yours differs, it may be a wise idea to continue shopping for the 3TB storage devices of the future, if you think those shall ever exist.