the rear camera isn't necessarily a deal breaker for me, but I keep running into situations where one would be really useful.. Wish I could post pics on instagram/fb/whatever social media app, wish I could take pictures of the lecture notes on a board, wish I could use it to supplement my Evernotes by adding 'scans' of pages I took notes from, wish I could take a picture of something I wanted to remember, maybe a spontaneous photo, etc. Like others said, a rear camera on a 7" tablet just makes sense.
But yeah, I'd love to see an iPad rival from Google.