Are they just of the impression that phablets will eat small tablets?
(I should say that of course there is SOME market for larger tablets out there. If they were producing a Nexus 7 and a Nexus 9, that would make more sense. But I thought that both expert consensus and sales were clear: the market for small tablets is much bigger than the market for big tablets. Unless you believe that small tablets are going to get replaced by phablets).
I've grown to loathe the Nexus 7. It's got a nice weight and feel to it from a hardware perspective but it feels too tall/thin in portrait and too short in landscape. I'm much more likely to pick up my older iPad instead. The performance of the 7 (second version) was also very disappointing. I'm actually interested in seeing the Nexus 9 not only because it fits me a bit better being a bit bigger but by going to 4:3 I think some of what I hate about the 7 will be eliminated. That being said it doesn't have enough storage so I probably won't get one.
No, everyone doesn't agree with your opinion that 7-8" is the right size for a tablet (I don't even agree that there is one right size.)
> Are they just of the impression that phablets will eat small tablets?
Probably. Given that even Apple has given up and gone to big and bigger with its phones, the space for mini tablets is narrowing.
I never liked the 7'' size. I stuck with my iPad 2 over getting a Nexus 7 because of this. This one looks perfect.