The materials are a lot better, as well. Aluminum vs. plastic (although I don't mind the N7's build at all). The iPad's screen is a much higher quality IPS display than the N7. Of course, I'm going to expect all of this in a tablet with a $70 higher price point, comparing 16GB vis a vis.
I would have liked to see the price come in at $299, but $329 is perfectly reasonable and this will be a best seller for Apple.
(I own and use both an iPad and a Nexus 7)